Slide 1: Mitsui's LNG business strategy
Motoyasu Nozaki, COO of Energy Business Unit II, which is mostly responsible for LNG business within the Energy segment, will talk about Mitsui’s LNG business strategy.
Slide 2: Global demand for energy projected to continue to increase
Global demand for energy projected to continue to increase in the medium to long term amid economic expansion and population growth. Calls for cleaner energy to increase as awareness of air pollution and need to address climate change grow. These demands for MORE energy and CLEANER energy, present d
Slide 3: Two basic strategies for the LNG business
Mitsui has formulated two basic strategies for the LNG business. (1) to Build a competitive asset portfolio and (2) to Expand and optimize our LNG sales and supply portfolio. As for (1) to build a competitive asset portfolio, we are maximizing the value of existing assets and steadily ramping up pro
Slide 4: Mitsui has participated in 9 LNG projects spanning 8 countries
Mitsui has participated in 9 LNG projects spanning 8 countries and more than 40 years, beginning with UAE/Abu Dhabi in the 1970s to Cameron in the US, where we began production in May 2019. One focus of our LNG business strategy is to increase value of our existing assets. In some projects, we can i
Slide 5: Cameron Train 1 online; Trains 2 and 3 preparing for launch
Cameron’s Train 1 is now online and Trains 2 and 3 are preparing for launch. We are trying to secure stable profits by limiting the scope to just LNG production while seeking additional profit by optimizing sales and supply of the LNG it produces. Mozambique LNG project, in which Mitsui has particip
Slide 6: Mozambique LNG: participation since the exploration phase in 2008
Mitsui first participated in the initial exploration phase in 2008 through a subsidiary that received investment support from JOGMEC. Since participation, gas reserves were discovered one after another through exploration activities, which now amount to recoverable gas reserves of more than 75 trill
Slide 7: With 1 TCF of gas, we can produce one million tons of LNG
With 1 TCF of gas, we can produce one million tons of LNG gas annually for 20 years. Therefore, with 75 TCF, we would be able to support roughly half of Japan’s current annual LNG gas demand for the next 30 years. In addition, our clients around the world view it as an important stable source of LNG
Slide 8: Total equity LNG capacity expected to increase
The total capacity was 5 million tons per year before production start at Cameron. This number is expected to increase to 10 million, with Cameron contributing 4 million tons, and Mozambique 1.2 million tons. Over the past 40 years, in addition to increasing equity LNG production capacity , we have
Slide 9: Gap between LNG suppliers and buyers is widening
In the current LNG market, the gap between the suppliers and buyers is widening; suppliers seeking stable long-term contracts to recover their huge initial investments; and purchasers seeking flexible, short-term contracts. The leading LNG players perceive this as a business opportunity, and activel
Slide 10: Cameron LNG facility and offtake rights
The Cameron facility was originally an LNG receiving terminal. However, with the surge in US shale gas production, facilities were later added to turn it into an LNG production base. Annual production capacity upon full start up is 12 million tons, of which we hold the right to offtake one third, or
Slide 11: Energy segment results and LNG cash flow targets
For the fiscal year ending March 2019, the Energy segment generated ¥219.1 billion in core operating cash flow and ¥95.7 billion in profit, of which LNG-related businesses accounted for ¥96.3 billion and ¥84.5 billion, respectively. For the year ending March 2025, the LNG-related businesses, backed
Slide 12: 360° business innovation
360° business innovation. mITsuIECO.