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Mitsui CEO says final push underway with TotalEnergies to revive Mozambique LNG project
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Mitsui CEO says final push underway with TotalEnergies to revive Mozambique LNG project
Dec 5, 2024 2:53 AM

TOKYO, Dec 5 (Reuters) - Japan's Mitsui & Co ( MITSF ) is

collaborating with TotalEnergies 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 ( MITSF ) 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,

TotalEnergies, Mitsui and Japan LNG Investment LLC, a company

jointly owned by Mitsubishi Corp ( MSBHF ) and Nippon Yusen

Kabushiki Kaisha.

Mitsui ( MITSF ) 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.

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