SANTOS TO COLLABORATE WITH JAPAN’S TOHO GAS ON PRODUCING CARBON-NEUTRAL E-METHANE IN THE COOPER BASIN

Santos has signed an agreement with Toho Gas, one of the largest gas utility companies in central Japan, to investigate the potential for producing carbon-neutral e-methane in South Australia’s Cooper Basin.

The Santos-Toho Gas collaboration supports Santos Energy Solutions' low-carbon fuel ambitions and could lead to the export of carbon-neutral e-methane, made by combining green hydrogen with CO2 obtained from carbon capture of industrial emissions or direct air capture in a circular economy.

The advantage of e-methane is that it has the same properties and chemistry as natural gas, and can use existing gas pipelines, LNG facilities (including liquefaction, ships, tanks and receival terminals) and gas distribution networks.

Therefore, e-methane could be a carbon-neutral substitute for natural gas, saving trillions of dollars in energy transition costs as a drop-in fuel to existing industrial processes and technologies, including for power generation, high-temperature heating and chemicals manufacturing. It’s also a direct substitute for use in appliances such as gas stoves and barbecues.

E-methane has the potential to provide relatively low-cost decarbonisation, including for hard-to-abate sectors where alternative technologies are not yet proven or economically viable.

This MOU supports and complements current studies with Tokyo Gas and Osaka Gas for the potential development of low-carbon e-methane production around Santos’ operations.

The MOU also builds on and complements recent MOUs with APA, ADNOC, JX Nippon and ENEOS as Santos seeks to build out a network of CO2 pipeline and other infrastructure supporting a new carbon capture and storage industry in Australia that could decarbonise not only our domestic economy, but regional economies as well.

Headquartered in Nagoya, Toho Gas’ primary businesses are in the supply of gas, heat and electricity to about three million customers in the Chubu region.