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

US FERC issues final SEIS for Commonwealth LNG’s project

The US Federal Energy Regulatory Commission (FERC) has released a final supplemental environmental impact statement for Commonwealth LNG's proposed LNG export plant in Louisiana. The regulator concluded that National Ambient Air Quality Standards (NAAQS) exceedances for 1-hour NO2 may be significant.

Pilot, Seapath secure final permits for Galveston LNG bunkering facility

Pilot LNG and Libra Group’s maritime unit Seapath have received final construction permits for their planned LNG bunkering facility in Galveston, Texas. The partners plan to take a final investment decision on the project in mid-2025.

TotalEnergies seals Ksi Lisims LNG deal

French energy giant TotalEnergies has signed a 20-year deal with Ksi Lisims LNG to buy LNG from the latter's planned export project in Canada. In addition, TotalEnergies will acquire a 5 percent stake in Houston-based Western LNG, the developer, shareholder, and future operator of the Ksi Lisims LNG project.

More News Like This

Inpex: Ichthys terminal sent 30 LNG cargoes in Q1

Japan’s Inpex has shipped 30 LNG cargoes from its Ichthys export plant in Australia during the January-March period of this year, four fewer than in the same period in 2024.

Hyundai E&C, Itochu ink LNG pact

South Korea’s Hyundai Engineering & Construction and Japan's trader Itochu have signed a memorandum of understanding to collaborate in several areas, including LNG.

Inpex says Ichthys LNG production temporarily reduced

The Inpex-operated Ichthys LNG export plant in Australia is currently producing at a reduced rate, according to Inpex.

Inpex still expects to launch Abadi LNG FEED in mid-2025

Japan's Inpex still expects to launch the front-end engineering design (FEED) for the planned Abadi LNG project in Indonesia in mid-2025, a spokesman for Inpex told LNG Prime on Wednesday.