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    Inpex signs carbon-neutral city gas supply pact


The company will supply the carbon-neutral gas to the Joetsu City Gas and Water Bureau.

by: Shardul Sharma

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Inpex signs carbon-neutral city gas supply pact

Inpex Corp and the Joetsu City Gas and Water Bureau have signed a carbon-neutral gas sales and purchase agreement, Inpex said on July 1.

Through this agreement, the Joetsu City Gas and Water Bureau, in Japan's Niigata prefecture, will purchase carbon-neutral gas from Inpex from July 2021 to March 2026 and convert a portion of the gas it supplies to Arisawa Manufacturing Co. to carbon-neutral gas. This will result in a CO2 reduction of approximately 19,000 metric tons, Inpex said. In addition, the bureau will convert the natural gas utilised at its own facilities to carbon-neutral gas.

According to Inpex, the Joetsu City Gas and Water Bureau will leverage this agreement to work toward the widespread adoption of carbon-neutral gas in order to support the further growth of customers such as Arisawa that are working to reduce their CO2 emissions.

At present, the Joetsu City Gas and Water Bureau markets carbon-neutral gas exclusively to large-scale consumers. However, it is making preparations to supply carbon-neutral gas to commercial and industrial customers as well, Inpex added.

Inpex has set goals to achieve its net-zero carbon emissions by 2050. The company plans to work closely with city gas business operators to which it supplies wholesale natural gas and implement measures contributing to the reduction of greenhouse gases. In May, Inpex signed an agreement to supply carbon-neutral gas to Nihonkai Gas. 

The supplies will be made CO2 neutral with the use of carbon credits, acquired from projects such as forest conservation that either reduce or avoid CO2 emissions. These credits will cover the entire value chain of the gas, from production to combustion.