Japan’s city gas supplier and LNG importer Osaka Gas has entered into a deal with Taiwan’s state-owned LNG terminal operator CPC to work on introducing e-methane to the energy market in Taiwan.
Besides studying e-methane, the two firms will explore other new energy options, including hydrogen, ammonia, and biogas, according to a statement by Osaka Gas.
E-methane is a synthetic gas produced from renewable hydrogen and carbon dioxide and can be transported via the existing gas infrastructure, including the LNG supply chain.
Introducing e-methane to energy markets saves the social cost of replacing or modifying the existing gas infrastructure, as required in the case of other options, such as hydrogen, through the continued utilization of those facilities, Osaka Gas said.
Osaka Gas said it is proceeding with several feasibility studies to produce e-methane in strategic locations, such as North America, South America, Australia, the Middle East, and Southeast Asia.
The company and Tokyo Gas, Osaka Gas, Toho Gas, and Mitsubishi revealed plans last year to produce e-methane in Texas or Louisiana, liquefy it at Sempra’s Cameron LNG facility, and transport it to Japan. Sempra recently joined the consortium as well.
Marubeni, Osaka Gas, and Peru LNG, the operator of the 4.45 mtpa liquefaction plant at Pampa Melchorita, are also moving forward with their plans to produce synthetic methane in Peru.
Cooperation on LNG import terminals
Osaka Gas and CPC have been working together in LNG procurement, and Osaka Gas has been providing engineering services to CPC for the commissioning of the Yung-An LNG terminal and the construction and operations of other terminals.
Earlier this year, Daigas Gas and Power Solution, a unit of Osaka Gas, secured a contract for CPC’s fourth LNG receiving terminal in Taiwan.
DGPS will provide front-end engineering and design (FEED) and technical consulting service for the construction project of Zhouji LNG receiving terminal owned and operated by CPC.
Last year, DGPS also secured FEED and technical consulting service for the Phase 4 expansion project of the Taichung LNG receiving facility.