Shell plc’s decarbonization agreement with two Japanese liquefied natural gas (LNG) customers could increase the use of low-carbon alternatives within the decade.

Tokyo Gas Co. and Osaka Gas Co. have signed a nonbinding framework with Shell’s Singapore-based subsidiary to consider natural gas and carbon capture, utilization and sequestration (CCUS) projects.

Each Japanese company plans to replace 1% of distributed gas with synthetic gas, or syngas, made from biomethane by 2030. The changes could result in a combined 140 million cubic meters of biomass gas being distributed in about 10 years. Both companies have set goals to meet Japan’s timeline for carbon neutrality by 2050. 

Tokyo Gas’ Kentaro Kimoto, senior managing executive officer, said those plans hinge on...