Osaka Gas Co. has agreed to purchase landfill-derived biomethane from BP Plc’s Archaea Energy unit, marking one of the first direct overseas procurements aimed at decarbonizing Japan’s city-gas network.
The company’s U.S. trading subsidiary will acquire approximately 26,000 normal cubic meters of the renewable fuel, to be liquefied at Freeport LNG terminal in Texas and shipped to the Kansai region. The first shipment is expected in January, according to Nikkei.
The deal underscores Osaka Gas’s push to introduce carbon-neutral alternatives into its pipeline network without costly infrastructure overhauls. The arrangement appears to be the utility’s first proper imported biomethane flow directly serving Japan’s city-gas system.
However, a critical regulatory hurdle remains unresolved. Japan’s greenhouse gas accounting system does not currently recognize environmental attributes associated with imported biomethane. National advisory councils are still deliberating whether overseas-sourced credits will qualify under domestic emissions reporting requirements. The project will rely on certification through the U.S.-based Midwest Renewable Energy Tracking System.
BP acquired Archaea for approximately $4.1 billion in 2022, making it the largest renewable natural gas producer in the United States. The unit operates more than 50 facilities nationwide.
For Osaka Gas, which handles roughly 11.5 million tons of LNG annually, the biomethane volume remains negligible. The initiative aligns with its Energy Transition 2050 strategy announced earlier this year, though scaling such imports will depend heavily on evolving Japanese policy.
