Mitsui CEO says final push underway with TotalEnergies to revive Mozambique LNG project

Nippon Yusen Kabushiki Kaisha

05/12/2024 10:39

TOKYO, Dec 5 (Reuters) - Japan's Mitsui & Co  8031.T  is
collaborating with TotalEnergies  TTEF.PA  and the Mozambique
government to finalise plans for restarting construction of the
$20 billion Mozambique liquefied natural gas (LNG) project, CEO
Kenichi Hori said on Thursday. 
    The project, led by TotalEnergies, has faced delays due to
concerns over violent unrest in the region.
    "We are working closely with the operator Total and the
Mozambique government to ensure security and finalise
preparations for resuming construction," Hori told investors,
adding the security situation in the area is showing signs of
improvement. 
    "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 project's strong competitiveness,
high-quality gas, and substantial reserves, he said that the
Japanese trading company will move forward while carefully
managing local risks.
    TotalEnergies CEO Patrick Pouyanne said in October that 70%
to 80% of a $14 billion financing package underpinning the
project has been reconfirmed by financiers.
    "We are waiting on the green light on financing from three
credit agencies, some are in Western countries where rules on
gas have changed ... as soon as that is in place we will move,"
Pouyanne said at the time.
    Mitsui's Hori also said it and its partners in the U.S.
Cameron LNG are finalising details for a final investment
decision on the expansion.
    "Once the FID is reached, the expansion will proceed in a
competitive manner, which will be a core of our future LNG
business," he said. 
    Cameron LNG is owned by affiliates of Sempra Energy  SRE.N ,
TotalEnergies, Mitsui and Japan LNG Investment LLC, a company
jointly owned by Mitsubishi Corp  8058.T  and Nippon Yusen
Kabushiki Kaisha  9101.T . 
    Mitsui expects LNG to continue to play a long-term role as a
viable solution for its global energy transition, Hori said,
pointing to its commitment to expand its LNG business.

 (Reporting by Yuka Obayashi; editing by David Evans)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))