Japan Mozambique lng argus media

Published date: 28 November 2023

Japan and Mozambique have reaffirmed their co-operation on resuming development of an LNG export project in the east African nation, with Japan planning to continue importing the fuel despite its target of net zero emissions by 2050.

Japanese foreign minister Yoko Kamikawa and her Mozambique counterpart Veronica Macamo confirmed the importance of the LNG project in Cabo Delgado province during their meeting held in Tokyo on 27 November. The project has been suspended since April 2021 following attacks by militants. Kamikawa requested further efforts by Mozambique to improve and maintain security in the region. Japanese premier Fumio Kishida had visited Mozambique in May and agreed with Mozambique's President Filipe Nyusi to encourage the restart of construction.

Japanese trading house Mitsui has a 20pc stake in the planned 13.1mn t/yr Mozambique LNG project through its subsidiary Mitsui E&P Mozambique Area 1. Japan's state-controlled energy agency Jogmec has been assisting Mitsui on the project since 2008 by taking a 49.9pc stake in the subsidiary. The project is led by TotalEnergies with a 26.5pc stake. Other stakeholders include Mozambique's ENH with 15pc, Thailand's state-controlled PTTEP with 8.5pc and Indian state-controlled firms ONGC, Oil India and Bharat Petroleum with 10pc each. TotalEnergies is targeting to restart construction by the end of this year with commercial operations beginning in 2028.

Japan's LNG imports have fallen in recent years as more domestic nuclear reactors have resumed operations. But LNG is still essential for Japan's energy security as a back-up for interruptible renewable power sources. This has prompted Tokyo to enhance its diplomacyto ensure stable supplies of the fuel, as well as future clean fuels hydrogen and ammonia.

Japan imported around 54mn t of LNG during January-October, down by 10pc compared with the same period in 2022, based on a preliminary data released by the finance ministry.

By Motoko Hasegawa

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