JAPAN’S Mitsui & Co, in partnership with TotalEnergies and the Mozambique government, is finalising plans to resume construction of the $20bn Mozambique liquefied natural gas (LNG) project, after delays caused by security concerns in the region.
Kenichi Hori, CEO of Mitsui, said on Thursday that the security situation in northern Mozambique is improving, allowing the company to move closer to restarting the ambitious project led by TotalEnergies. ‘We are working closely with the operator, Total, and the Mozambique government to ensure security and finalise preparations for resuming construction,’ Hori told investors.
Security remains key
The project, initially halted due to violent unrest, has seen incremental security improvements, according to Hori. ‘Several key checkpoints remain, but we are now in the final stages of preparation to restart construction as soon as possible,’ he said, highlighting the LNG project’s competitiveness, high-quality gas, and vast reserves as its primary strengths.
TotalEnergies CEO Patrick Pouyanne echoed these sentiments in October, revealing that 70-80 percent of the $14bn financing package for the project had been reconfirmed by financiers. ‘We are waiting on the green light on financing from three credit agencies, some of which are in Western countries where rules on gas have changed,’ Pouyanne explained, adding that construction would resume once final approvals were in place.
Mitsui’s LNG expansion plans
Mitsui’s ambitions extend beyond Mozambique. Hori announced progress on a final investment decision (FID) for the expansion of the US-based Cameron LNG project, where Mitsui is a partner alongside TotalEnergies, Sempra Energy, and Japan LNG Investment LLC.
‘Once the FID is reached, the expansion will proceed in a competitive manner, which will be a core part of our future LNG business,’ Hori said.
LNG as a transition fuel
Mitsui views LNG as a crucial component in the global energy transition. ‘We see LNG continuing to play a long-term role as a viable solution,’ Hori emphasised, reaffirming the company’s commitment to expanding its LNG portfolio.
The Mozambique LNG project is seen as a pivotal development in the global energy market, with its success potentially solidifying Mozambique’s status as a key player in LNG exports while contributing to Japan’s energy security.
