Shell to work with key Japanese LNG buyers on decarbonisation

Shell Eastern Petroleum Limited (Shell) has signed separate memorandums of understanding (MOUs) with its long-standing liquefied natural gas (LNG) buyers Tokyo Gas and Osaka Gas, the company said on Monday.

The MOUs represent a collaboration with both companies to explore potential opportunities to accelerate decarbonisation across their respective production value chains, Shell said in a statement.

The agreements include assessing a range of potential solutions including hydrogen, carbon capture, utilisation & storage (CCUS), biomethane and renewables-based synthetic gas among others. In addition, a tripartite side letter has been signed between Shell, Tokyo Gas and Osaka Gas to jointly explore and evaluate the potential of renewables-based synthetic gas.

“We have been delivering LNG to Japan for over 50 years and are proud to be part of Japan’s energy journey over the years,” Steve Hill, EVP Shell Energy, said in a statement.

“Customers are at the center of our energy transition strategy, and we are delighted to be collaborating with Tokyo Gas and Osaka Gas on exploring the potential of developing a range of low-carbon energy products and solutions like hydrogen and renewables-based synthetic gas, among others, to meet their decarbonisation needs,” he added.

In January 2022, Shell started production of green hydrogen in China with a 20 megawatts hydrogen electrolyser in Zhangjiakou, Hebei Province. In 2021, the company successfully achieved startup and production of renewable natural gas (RNG) at its first US biomethane facility.

“We are very pleased to sign this MOU with Shell. Shell and Tokyo Gas have been leading the LNG industry in their respective capacities for half a century,” Kentaro Kimoto, Tokyo Gas Senior Managing Executive Officer Head of Digital Innovation Division, said in a statement.

“Based on the framework of this agreement, we will continue to develop solutions to achieve a decarbonised society, including studying the possibility of a demonstration project that will contribute to the establishment of a synthetic gas supply chain. Tokyo Gas will continue to accelerate these initiatives in cooperation with the gas industry,“he added.