Tokyo Gas, gas users form alliance to boost use of carbon neutral LNG
09/03/2021 09:52
TOKYO, March 9 (Reuters) - Tokyo Gas Co Ltd 9531.T and 14
other Japanese companies that use city gas have formed an
alliance to enhance the use of carbon neutral liquefied natural
gas (LNG) to help tackle climate change, they said on Tuesday.
Carbon neutral LNG typically involves companies supporting
projects that reduce emissions to compensate for emissions
generated from exploration and production.
The move, which comes as carbon reduction targets tighten
around the world, may encourage global gas producers to offer
cleaner supplies.
Members of the new Carbon Neutral LNG Buyers Alliance come
from various industries and include Toshiba Corp 6502.T , Isuzu
Motors Ltd 7202.T and Mitsubishi Estate Co Ltd 8802.T .
In 2019, Tokyo Gas, Japan's biggest seller of city gas,
bought a cargo of carbon neutral LNG from Royal Dutch Shell
RDSa.L , which also supplied a similar cargo to South Korea's
GS Energy, Taiwan's CPC Corp and China National Offshore Oil
Corp, or CNOOC SASACY.UL . urn:newsml:reuters.com:*:nL4N2DZ12R
Tokyo Gas has already sold some of the supply to its local
customers and it wants to expand the buyers' network, Kunio
Nohata, the company's executive vice president, told a news
conference.
"We are seeking an innovation in hydrogen, methanation and
carbon capture utilisation technology, but it may take time," he
said.
"Therefore we want to spread the use of carbon neutral LNG
which is the most feasible measure right now to slash CO2
emissions," he said.
Nohata declined to comment on the cost of carbon neutral
LNG, citing confidentiality obligations.
Tokyo Gas hopes more LNG producers will offer carbon neutral
LNG so that it can widen its procurement sources, he said.
In February, Hokkaido Gas Co Ltd 9534.T said it will buy
carbon neutral LNG, which will account for about 10% of its
annual LNG purchases, from Mitsui & Co Ltd 8031.T .
(Reporting by Yuka Obayashi; editing by David Evans)
((Yuka.Obayashi@thomsonreuters.com; +813-4563-2761;))