Inpex and partners looking to ship Indonesian bio-LNG to Japan

Japan’s LNG player Inpex is joining forces with two other compatriot firms and Indonesia’s Pertamina to look into exporting bio-LNG from Indonesia to Japan, as part of a new deal revealed this week.

Besides Inpex and Pertamina, the two other partners are LNG engineering firm JGC and Japan’s city gas supplier and LNG importer Osaka Gas.

The four firms said in a statement on Monday they have entered into a joint study agreement on exploring the feasibility of a “clean natural gas” and LNG project in Indonesia involving the production of biomethane from palm oil mill effluent (POME).

Indonesia is the world’s largest producer and exporter of palm oil.

According to the statement, POME contains large quantities of organic material, resulting in significant methane emissions.

The project would contain POME-derived greenhouse gas emissions by sequestering methane and converting it to biofuels, contributing to the supply of “clean energy in a sustainable manner,” the partners said.

Inpex and partners looking to ship Indonesian bio-LNG to Japan
Image: Inpex

LNG bunkering

The statement said that the study would look into the feasibility of producing biomethane from POME resources located in Sumatra and Kalimantan for onward distribution to consumers in Indonesia, including Java.

The partners plan to supply biomethane through the existing gas grid in order to meet growing natural gas demand and also to contribute to the reduction of emissions of gas consumers in Indonesia.

In addition, the firms would also jointly assess opportunities for the project to leverage carbon crediting mechanisms and biomethane certification schemes to secure carbon neutrality.

Finally, the joint study would also involve identifying bio-LNG and bunker fuel marketing opportunities, including bio-LNG export to Japan and/or other countries, they said.

This includes exploring opportunities on providing LNG bunkering solutions at Pertamina’s Bontang LNG facility in East Kalimantan, the statement said.

Most Popular

Atlantic LNG shipping rates, European prices down

Atlantic LNG freight shipping rates and European prices decreased this week compared to the week before.

Glenfarne becomes majority owner of Alaska LNG

US energy firm Glenfarne has signed definitive agreements with state-owned Alaska Gasline Development Corporation to become the majority owner of the giant Alaska LNG export project.

Petronas to supply LNG to PetroVietnam Gas

Malaysian energy giant Petronas will supply liquefied natural gas (LNG) to PetroVietnam Gas, a unit of state-owned PetroVietnam, next month. The two firms will also look into the possibility of signing long-term LNG contracts.

More News Like This

Spain’s Sagunto LNG terminal gets 1000th cargo

Spain’s Sagunto liquefied natural gas import terminal near Valencia has received its 1000th cargo onboard Latsco's LNG carrier Hellas Athina.

Japan’s Osaka Gas, partners to build LNG power plant

The CCGT unit will use regasified LNG as fuel, but it will also be able to consume e-methane in...

Adnoc, Osaka Gas finalize Ruwais LNG supply deal

UAE's Adnoc has signed a 15-year sales and purchase agreement with Japan’s Osaka Gas to supply the latter with liquefied natural gas from its LNG terminal in Al Ruwais.

Samsung Heavy launches Petronas’ third FLNG

South Korea’s Samsung Heavy Industries has launched the hull of the third floating LNG production unit being built for Malaysian energy giant Petronas.