Japan’s Mitsui & Co. is working alongside TotalEnergies and the government of Mozambique to finalize preparations for the resumption of construction on the $20 billion Mozambique liquefied natural gas (LNG) project, CEO Kenichi Hori confirmed in a statement on Thursday, as reported by several news agencies. The project, which is being led by TotalEnergies, has been delayed for several years due to security concerns arising from violent unrest in the region, particularly in the northern part of Mozambique, where local insurgents have disrupted progress. These delays have significantly impacted the timeline for the project, which is expected to play a major role in the global LNG market once operational.

Mitsui is collaborating closely with TotalEnergies, the operator of the Mozambique LNG project, and the Mozambican government to address security issues and prepare for the restart of construction. According to Hori, the situation in the region is improving, with signs of greater stability in the area, which could help pave the way for the project’s resumption. Mitsui remains committed to carefully managing the risks associated with the local environment while ensuring that the project moves forward. The company has emphasized the competitive nature of the project, particularly its access to high-quality natural gas and the substantial reserves available, making it a highly attractive investment despite the regional challenges.

Hori’s comments also highlighted the strong financial backing for the project. In October, TotalEnergies CEO Patrick Pouyanne reported that around 70% to 80% of the $14 billion financing package needed for the project has been reconfirmed by financiers. However, the project still awaits approval from three key credit agencies, particularly in Western countries, where new regulations on gas and energy have been evolving. Pouyanne noted that as soon as the green light is received from these agencies, construction on the project could quickly move forward, signaling the final step in securing the necessary financing and completing the financing package.

In addition to the Mozambique LNG project, Mitsui is also making significant strides with its partners in the United States on the expansion of the Cameron LNG facility. Mitsui, along with its partners Sempra Energy, TotalEnergies, and Japan LNG Investment LLC (a joint venture involving Mitsubishi Corp and Nippon Yusen Kabushiki Kaisha), is in the final stages of preparations to make a final investment decision (FID) on the expansion project. The expansion, once approved, will play a crucial role in Mitsui’s long-term LNG strategy, reinforcing its position in the global LNG market. Hori noted that the expansion will proceed in a competitive manner, with an emphasis on making it a core part of Mitsui’s future LNG business.

Hori concluded by reaffirming Mitsui’s long-term commitment to LNG as an integral part of the global energy transition. Despite the ongoing challenges, Mitsui views LNG as a sustainable energy solution that will continue to play a vital role in meeting global energy demands. The company is focused on expanding its LNG business, believing it will remain a key player in the energy transition, supporting both energy security and sustainability worldwide.