Joint development of synthetic LNG by Tree Energy, TotalEnergies and Japanese firms in the US

By America Hernandez

PARIS, 2 December - French oil giant TotalEnergies, along with its partner Tree Energy Solutions, will develop synthetic methane in collaboration with Japanese companies Osaka Gas Toho Gas Itochu, at an American facility located in Nebraska.

Osaka Gas and Toho Gas will be the primary offtakers or contracted buyers of the synthetic gases as part of an aim to inject 1% of Japan's gas grid and reduce emissions by 2030.

The most common way to obtain methane, also called natural gas, is by drilling into the ground. However it can also be produced chemically. Synthetic methane releases greenhouse gases when burned. However, it is less polluting because of its cleaner production and the re-use CO2.

The facility is scheduled to be operational in 2030, and a final investment decision will be made in 2027.

TotaEnergies released a statement saying that the Live Oak project would leverage Nebraska's abundant CO2 biogenic resources captured from bioethanol facilities, as well as the growing renewable energy generation capacity of the United States.

Total and TES each will hold 33.35%, while the Japanese companies together will hold the remaining 33.3%. Reporting by America Hernandez, Paris Editing Bernadettebaum

(source: Reuters)