Generic Hero BannerGeneric Hero Banner
Latest market news

Japan’s gas suppliers to deliver low-carbon city gas

  • : Natural gas
  • 26/06/26

Japanese gas suppliers Inpex and Tokyo Gas plan to deliver city gas made with carbon-neutral methane to domestic consumers to promote the decarbonisation of the gas sector, the companies said on 25 June.

Inpex and fellow gas utility Osaka Gas have demonstrated manufacturing synthetic methane (e-methane) by using captured CO2 from Inpex's Koshijihara plant in Nagaoka city in the northeastern prefecture of Niigata and hydrogen procured from Japanese gas supplier Iwatani.

Inpex signed an agreement with the city of Nagaoka and gas utility Hokuriku Gas on 25 June to offer a clean gas certificate. With this certificate guaranteeing the decarbonisation impact, Hokuriku Gas will deliver low-carbon city gas made with Inpex and Osaka Gas' e-methane to public facilities in Nagaoka city.

While Inpex is attempting to supply city gas made with e-methane produced within the country, Tokyo Gas plans to deliver city gas generated with imported biomethane. Tokyo Gas will supply the low-carbon city gas to Japanese film manufacturer Fuji Film's Ashigara Work in the eastern prefecture of Kanagawa. Tokyo Gas aims to test the handling and examine the cost of the low-carbon city gas.

Tokyo Gas is considering using biomethane it previously imported from the US through Japanese trading house Mitsui. Tokyo Gas received the biomethane, which was generated from landfill-originated biogas, in March 2024. The company declined to disclose the detailed term of supply but plans to begin shipment within the April 2026-March 2027 fiscal year.

Japanese government and the gas industry have backed implementation of carbon neutral methane, as both e-methane and biomethane can use existing natural gas infrastructure including city gas pipelines. The ministry of economy, trade and industry Meti also expects e-methane to play a key role in hydrogen demand generation.


Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more