Shell Eastern Petroleum Limited (Shell) has signed separate non-binding memorandums of understanding (MOUs) with its long-standing liquefied natural gas (LNG) buyers Tokyo Gas and Osaka Gas. The MOUs represent a collaboration with both companies to explore potential opportunities to accelerate decarbonisation across their respective production value chains.
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.
Steve Hill, EVP Shell Energy stated “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. 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.”
Kentaro Kimoto, Tokyo Gas Senior Managing Executive Officer Head of Digital Innovation Division said, “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. 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. “
Keiji Takemori, Osaka Gas Senior Executive Officer Head Of Energy Resources And International Business Unit said “We are pursuing our net-zero target for 2050 under the Daigas Group Carbon Neutral Vision we announced in January 2021. We are very grateful for this opportunity to collaborate with our long-standing partner Shell under this MOU in developing solutions for carbon neutrality, such as synthetic gas produced by methanation technologies, and other decarbonisation solutions including hydrogen, ammonia, and CCUS.”
Shell’s target is to become a net-zero emissions energy business by 2050. Becoming a net-zero emissions business means offering customers more low-carbon products and Shell is working to build scale in decarbonisation technologies globally. Shell has been collaborating with the companies on addressing emissions from the LNG value chain, delivering LNG cargoes with carbon offsets since June 2019 with Tokyo Gas, and since July 2021 with Osaka Gas.