Japanese gas utilities take stake in Nebraska e-NG project

TES, TotalEnergies and a trio of Japanese gas companies have advanced plans for a large-scale synthetic natural gas project in Nebraska, signing a Joint Development and Operating Agreement that gives Osaka Gas, Toho Gas and trading house ITOCHU a combined 33.3% stake in the venture.

Under terms of the agreement, TES and TotalEnergies will each retain a 33.35% interest in the Live Oak project, which is preparing to enter front-end engineering and design. The partners plan to develop roughly 250 MW of electrolyzer capacity and produce about 75,000 tonnes per year of synthetic methane, also known as e-natural gas (e-NG) or e-methane.

A final investment decision is expected in 2027, with commercial operations targeted for 2030. Osaka Gas and Toho Gas are positioned as primary offtakers as Japan works to introduce carbon-neutral gas into its network. The country’s gas utilities have set a goal of blending at least 1% carbon-neutral molecules—such as e-NG—into the grid by the end of the decade.

The Live Oak project builds on the strategic partnership TES and TotalEnergies formed in 2023 to scale production of e-NG. The Nebraska location gives the developers access to major renewable power additions in the U.S. Midwest and a concentrated source of biogenic CO₂ from the region’s bioethanol plants. Captured CO₂ and renewable hydrogen are combined in a methanation process to produce e-NG.

Project sponsors said the entry of Osaka Gas, Toho Gas and ITOCHU helps position Live Oak as a flagship development for Japan’s long-term decarbonization strategy. Japan sees e-NG as a pathway to reduce emissions in its gas sector without requiring changes to LNG supply chains, regasification terminals or end-use equipment.

Because e-NG is chemically identical to conventional natural gas, it can be handled within existing LNG liquefaction, transport and distribution systems, allowing Japanese buyers to leverage current infrastructure while incrementally lowering the carbon intensity of their portfolios.

If the project proceeds on schedule, Live Oak would be among the first large-scale U.S. suppliers of synthetic methane for export, adding a new dimension to transpacific gas trade as both regions explore low-carbon fuels to meet climate targets.