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Marubeni, Osaka Gas, Peru

LNG plan feasibility study for

synthetic methane production

PROJECTS TWO Japanese companies, Marubeni and Osaka the Japanese gas sector’s progress toward carbon
Gas, have announced plans to team up with Peru neutrality, as it is supposed to account for more
LNG for a study of synthetic methane produc- than 1% of all gas circulating through the coun-
tion 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
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.
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
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
statement said. Melchorita complex, which includes a 4.45mn
It went on to say that the companies were tonne per year (tpy) gas liquefaction plant built
examining proposals for producing synthetic by Chicago Bridge & Iron Co. (CBI) and a marine
gas through methanation, a process that com- terminal constructed by a consortium known as
bines green hydrogen produced from renewa- CDB. (This group includes Italy’s Saipem, Lux-
ble energy with carbon dioxide extracted from embourg’s Jan de Nul and Brazil’s Odebrecht.)
industrial facilities to yield methane, the key The complex also incorporates a storage
component of natural gas. Peru is well suited for depot with two 130,000-cubic metre tanks and
such an endeavour, as it has existing gas infra- a 34-inch (860-mm) natural gas pipeline. This
structure that can be used for the project and pipe handles gas from fields in the Cusco region
abundant supplies of renewable energy, it added. that are being developed by YPF, the national oil
The scheme is also in line with the Japanese company (NOC) of Argentina, and Repsol of
government’s Sixth Strategic Energy Plan, which Spain. The link runs for 408 km from Chiquin-
was unveiled in October 2021. Under that plan, tirca, a town in the Ayacucho region, to the LNG
synthetic methane is slated to play a major role in plant.emissions™

Week 28 15•July•2022 www. NEWSBASE .com P17