Mitsui & Co., in collaboration with TotalEnergies and the government of Mozambique, is finalizing preparations to resume construction on the $20 billion Mozambique Liquefied Natural Gas (LNG) project.
The project, led by TotalEnergies, had been stalled due to ongoing security challenges in the region. However, Mitsui’s CEO, Kenichi Hori, has confirmed that significant progress is being made to address these obstacles, and the restart is imminent.
“We are close to completing the remaining key steps and aim to restart construction as soon as possible,” Hori said during a recent briefing, signaling renewed optimism for the ambitious project.
The Mozambique LNG project, located in the Cabo Delgado province, has been plagued by violent insurgencies in recent years, resulting in delays and heightened safety concerns.
However, both the Mozambique government and private stakeholders, including Mitsui and TotalEnergies, have worked tirelessly to mitigate risks in the area.
Hori noted that the security situation in Cabo Delgado is showing signs of improvement, giving investors confidence in the project’s feasibility.
This progress follows collaborative efforts between Mozambique’s authorities and international security forces to combat insurgents and stabilize the region.
The Mozambique LNG project is highly regarded for its vast reserves and the high quality of its gas, giving it a strong competitive edge in the global market.
Once operational, the project is expected to produce 13.1 million metric tons of LNG annually, cementing Mozambique’s position as a major player in the global energy landscape.
Hori emphasized Mitsui’s confidence in the long-term viability of LNG as a solution for the global energy transition.
“This project holds immense potential due to its substantial reserves and competitive pricing. We are committed to navigating the risks carefully and ensuring its successful execution.”
Kenichi Hori, Mitsui’s CEO
Mitsui’s Broader LNG Strategy
The Mozambique LNG project is just one component of Mitsui’s broader strategy to expand its LNG portfolio.
Hori also provided updates on Mitsui’s involvement in the U.S.-based Cameron LNG project, which is nearing a final investment decision (FID) for its planned expansion.
“After reaching the FID, we will begin the expansion, positioning it as a central pillar of our future LNG business,” Hori said.
Cameron LNG, located in Louisiana, is a joint venture between Mitsui, TotalEnergies, Sempra Energy affiliates, and Japan LNG Investment LLC, a company co-owned by Mitsubishi Corp and Nippon Yusen Kabushiki Kaisha.
The project currently has an annual production capacity of 12 million metric tons, and the proposed expansion is expected to significantly boost output.
Despite the global push for renewable energy, Mitsui remains steadfast in its belief that LNG will play a pivotal role in the energy transition.
Hori reiterated the company’s commitment to LNG as a cleaner and more sustainable alternative to coal and oil, particularly in emerging markets that are still heavily reliant on fossil fuels.
“We see LNG as a bridge fuel for the global energy transition. Its flexibility, lower emissions, and scalability make it a crucial component of the world’s future energy mix,” Hori explained.
The imminent restart of the Mozambique LNG project marks a major milestone for Mitsui, TotalEnergies, and Mozambique. As security concerns in Cabo Delgado ease and financial approvals progress, the project is poised to become a cornerstone of Mozambique’s economic transformation and a critical asset in the global LNG market.
By carefully managing risks and leveraging the region’s competitive advantages, Mitsui and its partners are positioning themselves to capitalize on the growing demand for LNG as the world transitions to a cleaner energy future. As construction nears resumption, all eyes will be on Mozambique to see how this monumental project unfolds.
READ ALSO: Niger Seizes French Uranium Mine
