PERU LNG announces Pre-FEED for e-methane production in Peru

PERU LNG together with Marubeni Corporation (Marubeni) and Osaka Gas Co. (Osaka Gas) have signed a joint study agreement to start a Preliminary-Front End Engineering and Design study ( Pre-FEED) for a project to produce e-methane*¹ from green hydrogen*² and carbon dioxide (CO₂) in Peru.

PERU LNG, Marubeni and Osaka Gas have been conducting an initial study for the project since July 2022. The initial study investigated renewable energy procurement potential and CO₂ required to produce approximately 60,000 tons of e-methane per year. As a result, Peru’s abundant renewable energy sources, mainly solar, wind, and hydropower, together with CO2 recovered from PERU LNG liquefaction terminal would allow the project to produce approximately 60,000 tons per year of e-methane at a competitive price.

The next stage will be to start a Pre-FEED, that will involve discussions on renewable energy procurement and raw materials (including CO₂); specification studies for plant construction; and economic evaluations and other detailed feasibility studies. After completion of Pre-FEED, Marubeni, Osaka Gas and Peru LNG will assess the results and evaluate if an investment decision can be made in 2025, with the aim of starting production and sales of e-methane by 2030.

As mentioned before, PERU LNG is thrilled to participate in the evaluation of this opportunity as e-methane can contribute to achieve carbon neutrality in the gas industry considering that e-methane production requires CO₂ that would be recovered from emissions. As an example of the importance of e-methane in the future, the Japanese government set a target for e-methane injection into existing city gas infrastructure by 1% in year 2030 and expected to reach 90% by year 2050 to promote the transition to carbon neutral gas.

*¹ E-methane: Methane produced from CO₂ and green hydrogen.

*² Green hydrogen: Hydrogen produced through an electrolysis process using electricity generated from renewable energy, involving the extraction of hydrogen from water which has been split into hydrogen and oxygen.

Related Release

Jul. 14, 2022

PERU LNG as part of its carbon neutral strategy, signs feasibility study with Osaka Gas and Marubeni for Methanation Project in Peru

About Osaka Gas

Name:                               Osaka Gas Co., Ltd

Head Office:                      4-1-2 Hiranomachi, Chuo-ku, Osaka 541-0046, Japan

Established:                       April 10, 1897

President:                          Masataka Fujiwara

Website:                            https://www.osakagas.co.jp/

About Marubeni

Name:                                 Marubeni Corporation

Head Office:                      4-2 Ohtemachi 1-chome, Chiyoda-ku, Tokyo, Japan

Established:                       December 1949

President:                          Masumi Kakinoki, President and CEO

Website:                            https://www.marubeni.com/en/