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The partners will
explore the feasibility
of producing synthetic
methane in Peru
for sale to domestic
and export markets,
including Japan.

Marubeni, Osaka Gas, Peru LNG plan feasibility

study for synthetic methane production

ENERGY TWO Japanese companies, Marubeni and the Japanese gas sector’s progress toward carbon
TRANSITION Osaka Gas, have announced plans to team up neutrality, as it is supposed to account for more
with Peru LNG for a study of synthetic methane than 1% of all gas circulating through the coun-
production in Peru. try’s pipelines by 2030, rising to 90% by 2050.
Marubeni said in a statement that the part- Marubeni is already a shareholder in Peru
ners had signed an agreement outlining their LNG. It owns a 10% non-operating stake in the The scheme is
plans for a joint study of the feasibility of pro- natural gas liquefaction plant and complex in
ducing synthetic methane in Peru for sale to Pampa Melchorita. also in line with
domestic and export markets, including Japan. The remaining equity in Peru LNG is split
The study will analyse and evaluate the viability between Hunt Oil (US), with 50%; SK Energy the Japanese
of such a project, which has “great potential to (South Korea), 20%; and Shell (UK), 20%.
achieve carbon neutrality” in the gas sector, the The partners spent $3.8bn to build the Pampa government’s
statement said. Melchorita complex, which includes a 4.45mn Sixth Strategic
It went on to say that the companies were tonne per year (tpy) gas liquefaction plant
examining proposals for producing synthetic built by Chicago Bridge & Iron Co. (CBI) and Energy Plan.
gas through methanation, a process that com- a marine terminal constructed by a consortium
bines green hydrogen produced from renewa- known as CDB. (This group includes Italy’s
ble energy with carbon dioxide extracted from Saipem, Luxembourg’s Jan de Nul and Brazil’s
industrial facilities to yield methane, the key Odebrecht.)
component of natural gas. Peru is well suited The complex also incorporates a storage
for such an endeavour, as it has existing gas depot with two 130,000-cubic metre tanks
infrastructure that can be used for the project and a 34-inch (860-mm) natural gas pipeline.
and abundant supplies of renewable energy, it This pipe handles gas from fields in the Cusco
added. region that are being developed by YPF, the
The scheme is also in line with the Japanese national oil company (NOC) of Argentina, and
government’s Sixth Strategic Energy Plan, which Repsol of Spain. The link runs for 408 km from
was unveiled in October 2021. Under that plan, Chiquintirca, a town in the Ayacucho region,
synthetic methane is slated to play a major role in to the LNG plant.™

P6 www. NEWSBASE .com Week 28 15•July•2022