Mitsui & Co. to invest $2.5bn in Liquefied Gas in Mozambique

Mitsui & Co. has said it will invest $2.5bn in a liquefied natural gas project in Mozambique.

The project which will entail the extraction of natural gas from a large-scale gas field off the coast of the southern African country, will see the liquefaction process done at an onshore plant before being shipped.

The project targets to produce about 12 million tons of LNG on a yearly basis 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.

Also Read: Namibia Economy to attract $1bn worth Investments in two years

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.

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.