August 30, 2023
Tokyo Gas Corporation
Osaka Gas Corporation
Toho Gas Corporation
Osaka Gas Corporation
Toho Gas Corporation
Participation of Sempra Infrastructure to the Detailed Study regarding the Introduction of e-methane to Japan Utilizing Cameron LNG Terminal
A consortium comprised of Tokyo Gas Company, Ltd., Osaka Gas Company, Ltd., Toho Gas Company., Ltd. and Mitsubishi Corporation today announced an agreement with Sempra Infrastructure, a subsidiary of Sempra, that it participates in the evaluation of a proposed project to produce e-methane, a form of carbon recycling, in the U.S. Gulf Coast.
The consortium is comprised of three of the leading gas utilities in Japan and Mitsubishi Corporation which have been conducting preliminary feasibility work on the project since 2022. With the addition of Sempra Infrastructure, the companies seek to advance the energy transition through the global market of liquified e-methane.
“Sempra Infrastructure is excited to bring its essential infrastructure development experience to this collaboration with Tokyo Gas, Osaka Gas, Toho Gas and Mitsubishi Corporation. The project would allow existing natural gas infrastructure, including the global liquefied natural gas supply chain and the gas distribution systems in nations across the world, to be used as the backbone for the delivery of a long-term, carbon-neutral fuel,” said Justin Bird, CEO of Sempra Infrastructure. “Sempra Infrastructure has strong strategic alignment with the goals of the consortium and is well-positioned to support this innovative opportunity by building on what we do well: developing energy infrastructure that provides access to safe, secure, affordable and lower-carbon intense energy for our global partners.”
“Tokyo Gas, Osaka Gas, Toho Gas and Mitsubishi Corporation intends to realize the world’s first large-scale production and international supply chain of e-methane and have been progressing feasibility work. The U.S. Gulf Coast is an 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 developing energy infrastructure in this region. We look forward to the development of this project as a truly global consortium,” said Kentaro Kimoto, Representative Corporate Executive Officer, Vice President of Tokyo Gas, Keiji Takemori, Senior Executive Officer of Osaka Gas, Takeo Haigo, Managing Executive Officer of Toho Gas, and Masaru Saito, Executive Vice President of Mitsubishi Corporation.
The proposed project is anticipated to produce 130,000 tonnes of e-methane per year that would be liquified to become liquified e-methane at the Cameron LNG terminal in Southwest Louisiana and exported to Japan. The proposed project is anticipated to include the production or procurement of clean hydrogen, as well as the construction of facilities to produce the e-methane.
The U.S. Department of Energy and Japan’s Ministry of Economy, Trade and Industry are currently implementing a Memorandum of Cooperation in the field of carbon capture, utilization and storage, conversion and recycling, and CO2 removal. This proposed project would meet many of the objectives in the memorandum, and could complement it, should the policy frameworks recognize e-methane as a carbon-neutral fuel.
Based on the Three Corporate Principles, which serve as MC’s core philosophy, MC has continued to grow together with society by contributing to the sustainable development of society through its business activities while pursuing value creation. MC’s revised “Materiality” was announced in Midterm Corporate Strategy 2024 as a set of crucial societal issues that MC will prioritize through its business activities, towards the strategy’s goal of continuous creation of MC Shared Value (MCSV). Guided by this Materiality, MC will continue to strengthen its efforts towards sustainable corporate growth. Out of the six material issues relating to “Realizing a Carbon Neutral Society and Striving to Enrich Society Both Materially and Spiritually”, this project’s activities particularly support “Contributing to Decarbonized Societies”“Promoting Stable, Sustainable Societies and Lifestyles” and “Utilizing Innovation to Address Societal Needs”.
Inquiry RecipientMitsubishi Corporation