TOKYO — Tokyo Gas has teamed up with Australian energy company Santos to come up with a plan to produce carbon-neutral synthetic methane, or e-methane, in Australia, then export it to Japan, the utility said on Tuesday.

The Japanese company and an investment arm of Santos have signed a memorandum of understanding to study the project’s feasibility. If practical, the intention is to establish a new production plant at the Cooper Basin, in the Pacific nation’s mid-eastern region.

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