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Gate 3 Medium-term Management Plan

Energy Segment

Cameron LNG

Cameron LNG
©Cameron LNG

  • Energy Business Unit I
  • Energy Business Unit II
  • Energy Solutions Business Unit
Business Activities

Through upstream development, logistics and trading of energy resources such as oil, natural gas/LNG, coal and uranium, we contribute to the stable supply of energy vital to society. In addition, as part of efforts to achieve a low-carbon society, we are expanding and accelerating initiatives in the energy solutions field, centered on next-generation fuels, and renewable energy generation, a growth domain. We are also engaged in operations that help reduce the impact of greenhouse gases, while creating unique value added.

  • Masaharu Okubo Managing Officer, Chief Operating Officer<br>of Energy Business Unit I

    Masaharu Okubo Managing Officer,
    Chief Operating Officer
    of Energy Business Unit I

  • Motoyasu Nozaki Managing Officer, Chief Operating Officer<br>of Energy Business Unit II

    Motoyasu Nozaki Managing Officer,
    Chief Operating Officer
    of Energy Business Unit II

  • Toru Matsui Managing Officer, Chief Operating Officer of Energy Solutions Business Unit

    Toru Matsui Managing Officer,
    Chief Operating Officer of Energy Solutions Business Unit

Business Environment

  • The dual challenge of balancing cleaner energy with more energy is an ongoing issue.
  • Business opportunities are increasing in fields that help reduce environmental load amid growing social interest in climate change. The role and expectations of new energy solutions is increasing.
  • Demand for energy will increase over the long term alongside growth in the world’s population and economy, and fossil fuels will remain a primary energy source.

Progress under Previous Medium-term Management Plan (top) and Targets in Medium-term Management Plan 2023 (bottom)

  • Expanded and improved quality of robust upstream asset portfolio, including LNG, advanced midstream and downstream trading functions, and made progress on optimizing physical distribution
  • Expanded efforts in distributed RE power sources, advanced electric power trading functions, made progress on commercialization of next-generation fuels, deepened collaboration with other divisions, created new business unit
  • Maintain and expand medium- and long-term profitability by evolving our competitive business portfolio based on the dual challenge. Create new value in the energy value chain
  • Expand and accelerate efforts in the energy solutions field. Formulate and execute Groupwide strategies to drive creation of next-generation businesses, leverage comprehensive strengths by integrating businesses

Individual Strategies

Area Our Approach
Upstream oil and gas development
  • By becoming more involved in projects, maximize value of existing assets and sharpen cost competitiveness
  • Reform E&P business model, leverage knowledge and networks in existing businesses to advance low-carbon businesses, and evolve the business portfolio
LNG
  • Steadily launch Arctic LNG 2 and Mozambique LNG development projects, enhance profitability and maximize value of existing projects
  • Strategically advance our balanced and highly competitive LNG supply portfolio by improving capital efficiency and recycling assets
Trading
  • Increase profitability with a greater awareness of capital efficiency and risk management while monitoring demand needs. Build logistics flows with an eye on transition to non-fossil fuels
  • Create, improve and optimize LNG sales portfolio that contributes to maximizing value of upstream operations
Renewable energy generation and related businesses
  • Expand and accelerate initiatives in distributed power sources, storage batteries, retail and logistics. Advance toward an integrated service provider for end consumers
Next-generation fuels
  • Create a next-generation fuel business portfolio, commercializing next-generation ethanol and bio jet fuel business
Hydrogen and carbon management
  • Establish business model for hydrogen value chain. Create business model for carbon management in offset operations, such as emissions credits

Impact from COVID-19 and Response Policies

  • We will collaborate with operators to continuously and thoroughly review capex/opex, and aim to strengthen cost competitiveness further.
  • In the trading business, we are paying even closer attention to managing credit and other risks. We are also monitoring demand recovery trends by region and by product.

LNG-Related Asset Portfolio

LNG-Related Asset Portfolio

Comprehensive Strength of Energy Solutions

Comprehensive Strength of Energy Solutions

Major Subsidiaries & Associated Companies

Mitsui Oil Exploration Co., Ltd.
Businesses Exploration, development and production of oil and natural gas
Ownership
Interest (%)
74.3
Annual
Earnings
(¥ billion)
18/3   11.5
19/3   24.8
20/3   22.0
Mitsui E&P Middle East B.V.
Businesses Exploration, development and production of oil and natural gas in Middle East
Ownership
Interest (%)
89.7
Annual
Earnings
(¥ billion)
18/3   3.5
19/3   6.5
20/3   3.7
Mitsui E&P Australia Pty Limited
Businesses Exploration, development and production of oil and natural gas in Oceania
Ownership
Interest (%)
100.0
Annual
Earnings
(¥ billion)
18/3   3.9
19/3   (0.3)
20/3   (14.2)
Mitsui & Co. Energy Trading Singapore Pte. Ltd.
Businesses International trading of petroleum products and crude oil
Ownership
Interest (%)
100.0
Annual
Earnings
(¥ billion)
18/3   (4.4)
19/3   0.8
20/3   7.2
Mitsui E&P Mozambique Area 1 Limited
Businesses Exploration, development and production of LNG in Mozambique
Ownership
Interest (%)
50.1
Annual
Earnings
(¥ billion)
18/3   (3.4)
19/3   (3.2)
20/3   11.2