Mitsui & TotalEnergies Push to Restart Mozambique LNG Project

Japan's Mitsui & Co (8031.T) is collaborating with TotalEnergies (TTEF.PA) and the Mozambique government to finalize 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 finalize 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)