Santos, Toho Gas sign MoU on e-methane
SUMMARY
The companies will investigate the potential for producing carbon-neutral e-methane in South Australia’s Cooper basin for export to Japan.
By Shardul SharmaAustralian oil and gas company Santos has signed an MoU with Japanese utility Toho Gas to investigate the potential for producing carbon-neutral e-methane in South Australia’s Cooper basin for export to Japan, it said on December 19.
The advantage of e-methane is that it has the same properties and chemistry as natural gas, and can use existing gas pipelines, LNG facilities (including liquefaction, ships, tanks and receival terminals) and gas distribution networks.
Santos CEO Kevin Gallagher said the collaboration with Toho Gas will focus on the Cooper basin which is shaping up as a large-scale decarbonisation and low-carbon fuels hub with potential access to a CO2 source from industrial emissions or direct air capture, and which has vast renewable resources for making green hydrogen with electrolysers.
“The Cooper basin, leveraging world class renewables and carbon storage resources, and Santos’ existing infrastructure position, is extremely well placed to meet Japan’s e-methane demand from 2030,” Gallagher said.
“We’re very excited to be working with Toho Gas and building the trade, technology and investment partnerships that will put Santos in an excellent position to support Japan’s decarbonisation through our LNG, CCS and low-carbon fuels businesses, including the potential for e-methane production,” he added.
This MoU supports and complements current studies with Tokyo Gas and Osaka Gas for potential low-carbon e-methane production in the Cooper basin.
This collaborative effort builds on recent MoUs with APA and ADNOC, solidifying Santos' commitment to establishing a network of CO2 pipelines and related infrastructure to support the burgeoning carbon capture and storage industry in Australia.
Santos also announced on December 18 a partnership with Japanese companies JX Nippon Oil & Gas Exploration Corporation and Eneos Corporation. The collaboration aims to explore the potential capture, transport, and sequestration of emissions from Japan, supporting the expansion of the Santos-operated Moomba CCS project.
Toho Gas has set a target of importing approximately 30,000 tonnes/year of e-methane by 2030.
