Business / Corporate

Mitsui & Co. to invest up to around $2.5 billion in LNG project in Mozambique


Mitsui & Co. said Wednesday it has made a final decision to invest in a liquefied natural gas project in Mozambique.

The project entails the extraction of natural gas from a large-scale gas field off the coast of the southern African country. The gas will then be liquefied at an onshore plant before being shipped.

Together with state-linked Japan Oil, Gas and Metals National Corp. (JOGMEC) the trading house will jointly hold a 20 percent interest in the project. Mitsui will invest up to around $2.5 billion.

The project aims to produce 12 million tons of LNG annually starting in 2024.

Of the total, Mitsui has reached a deal to supply 11.1 million tons to Japanese and foreign clients, including Tokyo Electric Power Company Holdings Inc. and Tokyo Gas Co., for a period of 10 to 20 years.

Mitsui has been engaged in the project, which was initially seen as a high-risk endeavor, since it was at the exploration stage.

The project is highly promising, a company executive said.