Challenge and Innovation Case Study
The spirit of challenge passed down through generations
“We have no 100-year history. Our standing in the industry is modest, and our performance may well be called the worst. Yet do not be ashamed of our short history. History is not something of the past. It is something that we must create and leave behind. As a young division, we have both the right and the obligation to dream big.”
Excerpt from the remarks of the General Manager of the Oil Division in the weekly business report (1977)
Creating our Own History
Mitsui’s energy business has built its foundations through successive challenges and evolved by continually expanding into new areas.
The spirit of challenge embodied in these words has been passed down from generation to generation and continues to drive Mitsui’s growth as we expand our business domains from domestic petroleum sales into oil refining, trading, E&P, LNG, and shale development.
Here, we look back on the journey of Challenge and Innovation that has defined more than half a century of our LNG business, built through continuous efforts to earn the trust of gas-producing countries, partners, and customers.
Ⅰ Taking on mega projects
LNG projects are highly demanding businesses characterized by significant capital investment requirements and long project lifecycles. Starting with our participation in ADNOC LNG in 1973, Mitsui has taken on major LNG projects including North West Shelf, Sakhalin II, and LNG developments in Qatar. While strengthening capabilities in marketing, financing, and shipping procurement, we built trust with partners and customers and contributed to the realization of these projects. The comprehensive capabilities and trusted relationships cultivated through these efforts have served as the foundation for our subsequent challenges and the growth of our LNG business today.
Ⅱ Evolving the business model
The commencement of LNG offtake from Cameron LNG in 2019 marked a turning point for our LNG business. We challenged ourselves to establish a business model in which Mitsui directly offtakes significant LNG volumes from projects in which we participate and delivers them to customers worldwide using our own fleet. Across our LNG business portfolio, we combine offtake from equity projects, long-term purchase agreements with third-party projects, long-term vessel charters, and a broad customer base. This enables flexible optimization of destinations and delivery timing in response to market conditions and has significantly strengthened our global supply-demand balancing function.
Ⅲ Creating the next business
Mitsui continues to challenge itself in new fields by leveraging its diverse strengths. In Mozambique, we joined the project during the exploration stage in 2008 and participated in the discovery of one of the world’s largest natural gas fields. We are now undertaking the challenge of constructing an LNG project to bring these abundant resources to global markets. In Ruwais LNG, the trust and track record built over more than 50 years in the UAE led to our selection as a partner alongside global energy majors in 2024. Together, we are advancing the production of low-carbon LNG powered by renewable energy. Drawing on knowledge and presence built over many years around the world, we will continue evolving our LNG business.
By combining LNG project investments with long-term procurement, shipping, and trading activities, we are creating new investment opportunities and expanding transaction volumes.
A globally diversified and resilient LNG portfolio
Over more than 50 years, Mitsui has steadily expanded its participation in LNG projects worldwide, building a geographically diversified LNG portfolio spanning the Middle East, Australia, Russia, Asia, the US, and Africa. This broad business platform supports stable operations and enhances resilience against changes in the business environment, including increasing geopolitical risks.
Evolution of LNG trading
Mitsui currently handles approximately 12 million tons of LNG annually under its own account. Over the next three years, in addition to expanding equity-based projects, we will actively pursue procurement opportunities beyond our existing project portfolio, aiming to increase annual trading volumes to between 15 million and 20 million tons by 2030.
A virtuous cycle between project investment and trading
The supply capacity acquired through business investments supports the enhancement of our trading capabilities and the expansion of our customer network. At the same time, the market insights accumulated through trading and our understanding of customers’ needs create new business investment opportunities. Through this virtuous cycle, in which business investments and trading mutually reinforce one another’s value, Mitsui is further strengthening the competitiveness of its LNG business.
Going forward, Mitsui will continue to leverage its robust LNG business portfolio and evolving trading capabilities to further strengthen its business foundation. Even amid an increasingly uncertain market environment, we will meet the diverse needs of our customers while contributing to a stable global energy supply.
Anticipating a wide range of scenarios arising from the energy transition, Mitsui leverages company-wide expertise and networks to combine a broad energy portfolio and provide comprehensive energy solutions that meet diverse customer needs.
Creating value across industry boundaries
As the environment surrounding energy undergoes significant change, the solutions required by society continue to evolve. By combining the diverse expertise and capabilities accumulated through our broad business portfolio, Mitsui creates combinatory value, generating business opportunities and solutions that transcend conventional boundaries and providing real solutions to the challenges faced by society and our customers.
Through collaboration with the Chemicals segment in areas such as ammonia, hydrogen, and methanol; collaboration with the Food Business Unit in SAF, HVO, and bioethanol; and initiatives in the digital infrastructure field through Gas & Power to Digital, Mitsui is expanding its points of connection with a wide range of industries centered on energy. In addition, alongside renewable energy and CCS, we are advancing initiatives to reduce the carbon intensity of gas supply through the utilization of RNG.*
By bringing together the comprehensive strength we have developed over time, Mitsui will continue challenging itself to create integrated energy solutions that provide one-stop solutions to diverse customer needs through the expansion of energy platform-based value chains and the development of new products, businesses, and markets.
* Renewable natural gas (RNG): Derived from waste products
