Tokyo Gas, Osaka Gas, Toho Gas and Mitsubishi Collaborate to Produce e-methane in the US and Transport It to Japan, Utilizing Cameron LNG in Louisiana

Nov 29, 2022 19:12 JST

Source: Mitsubishi Corporation

TOKYO, Nov 29, 2022 - (JCN Newswire) - Tokyo Gas Co., Ltd. (TG), Osaka Gas Co., Ltd. (OG), Toho Gas Co., Ltd. (THG) and Mitsubishi Corporation (MC) have entered into an agreement and commenced to conduct a detailed joint feasibility study on a project to produce synthetic methane (e-methane) in Texas or Louisiana, liquefy it at the existing Cameron LNG facility, and transport it to Japan utilizing other existing infrastructure, including LNG ships and receiving terminals in Japan. The targeted e-methane production volume is 130,000 tons per year1 to start in 2030.

This project is in line with the Japanese government's goal to achieve carbon neutrality in 2050, for which it is crucial to introduce carbon neutral gas that can meet the heat demand in the country. e-methane can be transported via the existing gas infrastructure and combusted in the present gas appliances without enormous costs of replacing or modifying them, which would be required to introduce other decarbonized gaseous energy carriers, such as hydrogen. Therefore, the government supports e-methane initiatives as a potential solution to transition into the net zero society smoothly, and it has been discussed intensively how to initiate and develop e-methane supply chain in Japan's Public-Private Council for the Promotion of Methanation, an organization established in June 2021, where TG, OG, THG and MC have participated.

For e-methane's better visibility, it is effective to promote the synthetic methane in Japan and overseas, simultaneously and important to establish cost-competitive e-methane supply chain from overseas where renewable power is accessible at low cost. While the four companies are respectively conducting feasibility studies on various locations for e-methane outside Japan, they have selected areas near to the existing Cameron LNG facility as most suitable as of now for e-methane production by their joint venture. This decision was made in light of accessibility to the infrastructure for feedstock procurement and high possibility of achieving early establishment of the supply chain. The four companies will continue to conduct feasibility studies on other promising locations to expand its e-methane procurement capabilities for enhanced energy security of Japan.

The four companies intend to accelerate the detailed study to realize the world's first large-scale production and international supply chain of e-methane while working to achieve a carbon neutral economy in Japan utilizing e-methane.

(1) 130,000 tons is equivalent to 1% of the total annual city gas demand of TG, OG, and THG combined.

For more information, visit www.mitsubishicorp.com/jp/en/pr/archive/2022/html/0000050341.html.

Sectors: Energy, Alternatives