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Shell to decarbonise LNG value chain in Japan focusing on opportunities with renewables

Shell has agreed to decarbonise the LNG value chain through collaboration with natural gas buyers Tokyo Gas and Osaka Gas. It has paved the way for more opportunities to work with renewable sources, such as wind or solar power.

The company signed non-binding memorandums of understanding with these two companies.

According to the company, the first agreement paves the way for "assessment of a wide range of potential solutions, including carbon capture, utilisation and storage, hydrogen, biomethane, and renewables-based synthetic gas."

Similarly, the second agreement focuses on "opportunities with synthetic gas produced with electricity from renewable sources."

Steve Hill, EVP Shell Energy was quoted in a report, “We have been delivering LNG to Japan for over 50 years 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.”

Meanwhile, Kentaro Kimoto, head of the Digital Innovation Division at Tokyo Gas, was quoted in a report, “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."


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