Petroliam Nasional Bhd (Petronas) has partnered with Japan-based Sumitomo Corporation and Tokyo Gas to conduct a feasibility study on the development of a carbon-neutral methane gas supply chain between Malaysia and Japan. The firms will work together to help Japan achieve carbon neutrality by introducing carbon-neutral methane as an alternative energy source.

Methane gas will be produced in Malaysia using the process of methanation, which will utilise renewable energy (RE) and carbon dioxide. Under the methanation process, hydrogen and CO2 chemically react to generate methane. This process can be carried out using existing infrastructure and facilities in Malaysia including city gas supply facilities , liquefied natural gas carriers and natural gas liquefaction plants.