Japan’s Mitsui & Co Ltd will make a final investment decision (FID) on a liquefied natural gas (LNG) project off the coast of Mozambique by the end of March, its chief financial officer, Keigo Matsubara, said on Friday.
The FID was initially expected by the end of this year. The negotiations with the local government on various conditions are taking time, Matsubara said.
Matsubara also said the trading company has not changed its view that a slump in iron ore prices may continue through 2019 but the market will recover after consolidations of high-cost mines.
Mitsui’s expectation goes in line with recent comments by John Peffer, the country manager at Anadarko, the operator of the project, that the partners are close to submitting a development plan.
Peffer did, however, say that the decision depends on the government’s approval of the development plan which in some cases can take up to nine months.
Anadarko informed in August that it has lined up 90% of supply deals that are also awaiting government’s approval.
The Mozambique LNG partners are Empresa Nacional de Hidrocarbonetos, Anadarko, Mitsui & Co, Bharat PetroResources, ONGC Videsh, Oil India, and PTT Exploration & Production.