Osaka Gas to ship US bio-LNG to Japan

Osaka Gas Trading and Export (OGTX), a unit of Osaka Gas USA, agreed on the procurement of biomethane produced by Archaea.

Under this agreement, OGTX will purchase approximately 26,000 Nm³ of biomethane derived from landfill gas, produced at Archaea’s facilities operating in the US, according to a statement by Osaka Gas.

Osaka Gas said it will liquefy the biomethane at the Freeport LNG terminal along the U.S. Gulf Coast and ship it to its LNG terminals in the Kansai region of Japan.

The biomethane, together with its associated environmental attributes generated from this production, will be supplied through the pipeline network to Osaka Gas’ customers for use at its facilities in Kansai.

“Through this initiative, Osaka Gas aims to establish a domestic and international supply chain that supports the introduction of carbon-neutral energy resources, such as biomethane and emethane, to Japan,” the firm said.

Osaka Gas has a 10 percent stake in the Freeport LNG terminal and offtakes gas from the three-train plant.

Freeport LNG recently loaded and shipped the 1000th cargo of LNG from its plant in Texas since 2019.

Earlier this year, the LNG terminal operator completed its debottlenecking project, which increased the terminal’s production capacity from an excess of 15 mtpa to just over 16.5 mtpa.

Freeport is also planning to add a fourth liquefaction train to boost its capacity by 25 percent.

In July, Freeport secured an additional extension from the US Federal Energy Regulatory Commission (FERC) to construct the fourth liquefaction train.