Four Japanese companies have entered into an agreement and commenced a detailed joint feasibility study on a project to produce synthetic methane (e-methane) in the US and transport it to Japan utilizing the Cameron LNG facility in Hackberry, Louisiana.
Tokyo Gas, Osaka Gas, Toho Gas and Mitsubishi Corporation will study the viability of producing e-methane in Texas or Louisiana, liquefying it at the existing Cameron LNG facility, and transporting it to Japan utilising other existing infrastructure, including LNG ships and receiving terminals in Japan.
The venture is said to be 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.
The detailed joint feasibility study is due to be finalised by the end of the 2023 fiscal year
based on the results of onsite surveys and discussion on the rules and systems necessary for the development of the e-methane supply chain.
The project aims for FEED entry in 2024, FID in 2025, the first e-methane production in 2029 and the commencement of export to Japan in 2030.
For more on industry trends, upcoming opportunities or workforce solutions, please connect with our AXG team today!