Sempra Infrastructure has signed an agreement with a consortium of Japanese companies to evaluate a proposed project to produce electronic natural gas on the US Gulf Coast.
The consortium consists of three of the main gas companies in Japan, Tokyo Gas Co. Ltd., Osaka Gas Co. Ltd. and Toho Gas Co. Ltd., as well as Mitsubishi Corp., which have been conducting preliminary feasibility work on the project since 2022, according to a press release from Sempra Infrastructure on Wednesday.
The proposed project aims to produce 130,000 metric tons of e-natural gas per year, which would be converted to e-liquefied natural gas using Mitsubishi’s tolling capacity at the Cameron LNG terminal in southwest Louisiana. The liquefied natural gas would be exported to Japan, where the product is commonly known as methane, according to the statement.
The proposed project is expected to include the production or procurement of green hydrogen, as well as the construction of facilities to produce electronic natural gas. If successful, the project could be the first link in an international supply chain for liquefied natural gas, a synthetic gas produced from renewable hydrogen and carbon dioxide, the statement said.
The development of the proposed project is conditional on the completion of the required commercial agreements, necessary permits, financing and the final investment decision, among other factors and considerations, according to the release.
“The project would allow existing natural gas infrastructure, including the global LNG supply chain and gas distribution systems in nations around the world, to be used as the backbone for the delivery of a long term carbon neutral fuel”. Sempra Infrastructure CEO Justin Bird said. “Sempra Infrastructure has strong strategic alignment with the consortium’s goals and is well positioned to support this innovative opportunity based on what we do well: developing energy infrastructure that provides access to a safe, secure, affordable and low carbon and zero energy for our global partners.”
“Tokyo Gas, Osaka Gas, Toho Gas and Mitsubishi Corporation intend to realize the first large-scale production and international supply chain of electronic natural gas and have advanced feasibility work. The US Gulf Coast is a ideal location for this type of facility and we are pleased to partner with Sempra Infrastructure, a company with a reliable and qualified track record of energy infrastructure development in this region,” according to a statement from Kentaro Kimoto, representative. chief executive officer of Tokyo Gas, Keiji Takemori, senior executive officer of Osaka Gas, Takeo Haigo, chief executive officer of Toho Gas, and Masaru Saito, executive vice president of Mitsubishi.
The US Department of Energy and Japan’s Ministry of Economy, Trade and Industry are currently implementing a memorandum of cooperation in the areas of carbon capture, utilization and storage, conversion and recycling, and carbon dioxide removal. If electronic natural gas were recognized as a carbon-neutral fuel, the proposed project would meet and complement the goals of the memorandum, according to the release.
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