Can a Cross-Border Alliance Reinvent the LNG Future?

Energy majors and Japanese utilities advance a Nebraska project to make low carbon methane using renewables and biogenic CO2

3 Dec 2025

A group of international energy companies is pushing ahead with the Live Oak synthetic gas project in Nebraska, aiming to produce low-carbon methane that can move through existing liquefied natural gas and pipeline networks.

TotalEnergies and Tree Energy Solutions recently signed a joint development and operating agreement with Osaka Gas, Toho Gas and Itochu. The partners intend to build an industrial-scale facility that will combine renewable hydrogen with carbon dioxide captured from nearby bioethanol plants. The resulting synthetic methane, also known as electric natural gas, can be processed and transported using current LNG infrastructure without major adjustments for end users.

For TotalEnergies and TES, the project fits into broader plans to expand supply of cleaner molecules within established gas markets. The Japanese companies view Live Oak as a way to secure lower-carbon imports that can be blended into domestic networks to support national climate targets. Osaka Gas and Toho Gas are expected to be key offtakers once operations begin, with volumes shipped from the US to Japan under long-term arrangements.

Live Oak aims to draw on regional advantages. Nebraska hosts a large bioethanol industry that produces a steady flow of biogenic carbon dioxide. Capturing these emissions and pairing them with hydrogen from renewable power would create a circular system in which carbon is reused. Rising wind and solar capacity across the central US is expected to supply the electricity needed for electrolysis.

Project backers say synthetic methane could support small-scale and distributed LNG strategies by allowing production close to industrial emitters. Such fuels could offer buyers a lower-carbon option without the need to redesign existing infrastructure. Shipowners and gas utilities could also reduce portfolio emissions by sourcing molecules compatible with current LNG logistics.

But the hurdles are significant. Production depends on large quantities of low-cost renewable electricity and advanced carbon capture and hydrogen equipment. Regulators are still developing rules to certify the climate performance of low-carbon gases. Costs remain uncertain and may stay high until technology and supply chains mature.

Even so, analysts say the Nebraska effort shows major energy groups are ready to test models that link LNG expertise with emerging hydrogen and power technologies. As engineering work begins and the partners move toward a final investment decision, Live Oak has become one of the most watched synthetic LNG initiatives in North America, with its progress likely to influence how quickly low-carbon methane can scale in global gas markets.