Japan’s Inpex to supply carbon-neutral LNG to Sakata Natural Gas

Japan’s Inpex said it would supply carbon-neutral LNG to compatriot city gas supplier Sakata Natural Gas under a new deal revealed last week.

Inpex said in a statement the two firms signed the deal on Friday.

Under the contract, Sakata Natural Gas would purchase carbon-neutral LNG from Inpex and convert the fuel utilized by its head office and facilities to carbon-neutral LNG, according to Inpex.

Given the accelerating regional efforts aimed at decarbonization, Sakata Natural Gas “will
leverage this shift to carbon-neutral gas consumption to continue actively promoting various
initiatives to help develop a sustainable society and fulfill its social responsibility as an energy supplier,” the statement said.

“The neutrality of the LNG is based on carbon credits certified by a credible certifier as deriving from CO2 reduction efforts at global forest conservation projects, etc. based around the world where greenhouse gas emissions have been offset throughout the entire value chain process from development to combustion,” the firm said.

The company said it would continue to work with city gas business operators to which it
supplies wholesale natural gas and implement measures contributing to the reduction of
greenhouse gases by providing solutions such as carbon-neutral gas and other forms of “clean energy”.

Inpex did not reveal further information regarding the contract.

In July 2021, Inpex received its first carbon-neutral LNG cargo at the Naoetsu import terminal in Niigata prefecture. The cargo arrived from its Ichthys LNG export plant near Darvin, Australia.

Afer that, Inpex supplied a carbon-LNG cargo from Ichthys to compatriot city gas supplier and LNG importer Toho Gas.

Inpex also delivered a carbon-neutral LNG shipment to compatriot city gas supplier and terminal operator Shizuoka Gas.

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