Japan to increase investments in natural gas projects offshore Mozambique

(Bloomberg) – Japanese investors will be supported to increase investment in natural gas projects in Mozambique as the Southeastern African country aims to develop giant offshore projects, Prime Minister Fumio Kishida said.

Japan will encourage “the entry of more Japanese businessmen” in Mozambique, Kishida said on Thursday in the capital, Maputo. “Cooperation in the energy sector with the development of liquefied natural gas projects” will continue, he said.

Tokyo-based Mitsui & Co. holds a 20% stake in Mozambique’s flagship $20 billion LNG project. Led by TotalEnergies SE, the project has been halted for more than two years due to Islamic State-linked terrorist attacks in the region.

Japan last year regained its position as the world’s biggest LNG importer, overtaking China as prices for the fuel soared after Russia’s invasion of Ukraine. Security in Mozambique’s Cabo Delgado province that’s home to major natural gas projects has improved significantly since regional troops arrived to assist the government, but some attacks persist.

Kishida promised financial support for Mozambique to counter terrorism.

“Security is crucial for the operation of Japanese companies in northern Mozambique,” he said. “Japan will financially support the fight against terrorism.”

Mozambique had recently announced that it will receive maritime surveillance equipment and a ship donated by the Japanese government worth $830,000.