India's $20 Billion Mozambique LNG Project REVIVED! ONGC Powerhouse Back on Track!

Energy

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Updated on 12 Nov 2025, 04:58 pm

The Mozambique liquefied natural gas (LNG) project, a venture exceeding $20 billion, has seen its force majeure declaration lifted, signaling a significant step towards completion. The operator, Total E&P Mozambique Area 1 (a subsidiary of TotalEnergies), had suspended construction activities in May 2021 due to deteriorating security conditions in the Cabo Delgado province.

ONGC confirmed that the security situation has improved, allowing the Area 1 Mozambique LNG consortium to notify the Government of Mozambique to end the force majeure, which was originally declared on May 11, 2021. This enables the restart of construction for the project, which aims for an annual capacity of 13.12 million tonnes per annum (MTPA).

Indian public sector undertakings, including ONGC Videsh, Bharat Petro Resources (through its subsidiary), and Oil India, hold a combined 30% stake in the project. This project is recognized as one of the largest gas discoveries in offshore East Africa, with estimated recoverable resources of around 65 trillion cubic feet (TCF).

Impact This news is a positive development for the Indian companies involved, promising the eventual realization of their significant investment and potential future revenue streams. It is expected to boost investor confidence in these PSU stocks. The restart could also contribute to global LNG supply dynamics. Rating: 7/10

Difficult Terms Explained: Force Majeure: A clause in contracts that frees both parties from liability or obligation when an extraordinary event or circumstance beyond human control (like war, strike, or natural disaster) prevents one or both parties from fulfilling their obligations. Liquefied Natural Gas (LNG): Natural gas that has been cooled down to liquid form at very low temperatures, making it easier and safer to transport over long distances. Cabo Delgado Province: A northern province in Mozambique, Africa, which has faced security challenges. Participating Interest (PI): The percentage of ownership or stake a partner holds in a joint venture or project, determining their share of costs, risks, and profits. MTPA (Million Tonnes Per Annum): A unit of measurement for the annual production or processing capacity of large industrial facilities, often used for LNG projects. TCF (Trillion Cubic Feet): A unit used to measure large volumes of natural gas.