Masdar, INPEX, Tokyo Gas, and Osaka Gas join forces to create e-methane supply chain from UAE to Japan

Abu Dhabi Future Energy Company PJSC – Masdar (Masdar), INPEX, Tokyo Gas, and Osaka Gas have signed a collaboration agreement to conduct a joint feasibility study on e-methane1 production in Abu Dhabi, Masdar has announced.

Masdar and INPEX have been conducting a joint study to produce e-methane utilising low-cost renewable energy in Abu Dhabi based on an agreement signed on July 17, 2023, the company said in a statement. Tokyo Gas and Osaka Gas have newly joined this initiative, and through it plan to off-take e-methane in volumes equivalent to 1% of each company’s annual city gas demand.

With this initiative, Masdar, INPEX, Tokyo Gas and Osaka Gas aim for the early establishment of an e-methane supply chain from the UAE to Japan to contribute to the UAE and Japanese governments’ shared goal of achieving carbon neutrality by 2050.

Tokyo Gas and Osaka Gas are aiming to introduce e-methane to cover 1% of their respective annual city gas demand by 2030 and further increase the introduction volume from the total of their worldwide projects toward 2050, Masdar said.

The four partners will evaluate the economics of producing and procuring feedstocks, such as green hydrogen and CO2, as well as the production and transportation of e-methane. The overall reductions in CO2 emissions will also be evaluated.

“e-methane” is compatible with existing LNG infrastructure such as LNG tankers and terminals as well as city gas infrastructure including pipelines and consumer gas equipment, limiting social costs associated with its introduction. “e-methane” is therefore considered a pragmatic carbon-neutral or lower-carbon solution for thermal sectors where electrification is a challenge, Masdar said in a statement. Applications are also expected in the power generation and transportation sectors.