Osaka Gas’ e-methane project in Peru advances to pre-FEED phase

Japan’s Osaka Gas in collaboration with Marubeni Corporation and Peru LNG will work on the production and liquefaction of e-methane at Peru LNG's terminal, Osaka Gas announced on August 22.

The three partners will undertake a joint detailed study as a pre front-end engineering and design (pre-FEED) stage activity, following a joint feasibility study launched in July 2022. The objective of this collaboration is to produce approximately 60,000 tonnes of e-methane annually by 2030.

The companies intend to delve into various aspects of the e-methane project, including terms and conditions for e-methane feedstock procurement, specifications for e-methane plant construction, and an in-depth analysis of the business feasibility for producing, liquefying, and supplying of e-methane to markets in Japan, Peru, and beyond, Osaka Gas said.

The outcome of the pre-FEED study will guide the three partners in making an investment decision by 2025, with the aim of initiating e-methane production by 2030. The prior feasibility study verified the viability of producing e-methane at competitive costs within Peru LNG's natural gas liquefaction terminal.

The process utilises carbon dioxide recovered from the terminal facility and green hydrogen generated from renewable energy sources, such as hydro, solar, and wind power, available in the terminal's vicinity.