Japan stepping up methane reduction ante in LNG supply chain

Japan’s Ministry of Economy, Trade, and Industry (METI) and multiple national and international partners intend to boost efforts to increase transparency across the liquefied natural gas (LNG) supply chain and reduce greenhouse gas emissions. 

Together with the Japan Organization for Metals and Energy Security (JOGMEC), the International Energy Agency (IEA), the United Nations Environment Programme’s International Methane Emissions Observatory (UNEP’s IMEO), the International Group of Liquefied Natural Gas Importers (GIIGNL), the Environmental Defense Fund (EDF), and the methane emissions certification body MiQ, METI issued a statement to accelerate the reduction of LNG supply chain emissions.

Backed by the Government of Canada, the announcement is said to build on actions by the Coalition for LNG Emission Abatement toward Net-zero (CLEAN initiative). The initiative aims to enhance the transparency of LNG-related emissions and encourage LNG producers to improve emissions performance management practices.

This is the latest in efforts around the globe to tackle methane emissions, aiming to move toward a greener future and achieve a 75% cut in methane emissions from fossil fuels by 2030.

Recognizing that there are opportunities to reduce emissions across the LNG supply chain, the partners intend to jointly work on creating a roadmap for reducing LNG-related emissions. They will also assess the feasibility of developing emission reduction technologies.

The partners also plan to develop a verification mechanism for emissions reduction from the LNG supply chain, aiming to leverage existing global standards and protocols.

This is particularly relevant as, based on November 2024 data from Statista, Japan has the largest LNG import capacity in the world, with the country’s LNG import terminals boasting a combined capacity of nearly 242 million metric tons per year.

“It matters when buyers state their preferences for lower-carbon fuels. A growing number of producers are starting to compete on emissions performance, particularly low methane intensity gas, and the trend will only continue as efforts like this flourish across the Asia-Pacific region and beyond,” said Fred Krupp, President of the Environmental Defense Fund.

“Japan is in the vanguard of countries making methane transparency a core part of reducing emissions from the global LNG supply chain. This is one of the smartest, most practical steps the energy sector can take right now to cut climate pollution and secure gas supplies.”

According to EDF, cutting methane is the fastest, most cost-effective way to slow the pace of global warming. While long-term climate goals require deep cuts in carbon dioxide emissions, reducing methane emissions in the near term is thought to be essential to limit the most extreme climate impacts and protect people and the planet. 

EDF describes the Asia-Pacific region as central to the energy transition. This is supported by data from GIIGNL, stating that Asia is the leading importing region in the world, importing 272.5 MT, or 73.2% of global LNG imports, in 2021.

The Asian continent is driving the demand growth, notably led by the growth of LNG imports into China, which recently overtook Japan as the largest LNG importer. Other major importers from the region are South Korea, India, and Taiwan.

As stated by Krupp, satellite data plays an important role in providing the full picture of methane emissions from LNG production. This is one of the reasons the EDF launched MethaneSAT last year, a satellite designed to help protect the Earth’s climate by accelerating reductions of methane.

“Environmental Defense Fund has spent more than a decade advancing the science, tools and partnerships needed to make methane transparency possible — and this collaboration is a powerful reflection of that work. Through efforts like MethaneSAT and the CLEAN Initiative, Environmental Defense Fund is contributing to the ability of countries and companies to turn methane commitments into measurable progress,”  noted Krupp.

This comes on the heels of several LNG supply deals Japan’s JERA concluded with international partners. Four deals were made with U.S. companies earlier this month, while this week, the Japanese firm inked a heads of agreement (HoA) on LNG supply with Woodside.