Tokyogasgroup csr report

Enhancement of Energy Security

Targets and Performance

Stable Supply

<Reasons for identification of material aspects>

  • To meet public demand for secure, low-priced supplies of energy given higher expectations of natural gas following the Great East Japan Earthquake and the transformation of Japan's energy market as a result of reforms to the electricity and gas systems.
  • To contribute to efforts to expand competitive power generating capacity and increase electricity sales so as to ensure safe and stable supply, and to provide optimal energy solutions incorporating value-added as well as gas and electricity services.
  • To contribute to the development of energy services and energy infrastructure overseas by applying the Tokyo Gas Group's accumulated technologies.


Performance in FY2016: Overview and Assessment
Criteria for evaluating indicators

○
Target achieved (100% or above)
△
Target not achieved but improved from previous fiscal year (not 100% achieved but improved from previous fiscal year)
×
Target not achieved
*
Qualitative indicators with no evaluation axis are evaluated on the basis of whether or not progress has been made since the previous fiscal year.
Target
(CSR indicator)
FY2016 results Evaluation
LNG procurement to ensure stable and affordable supply Further diversification of LNG procurement
April 2016: Began studying the possibility of forming a strategic partnership on LNG procurement with Kansai Electric Power Co., Inc., and agreed to pursue collaboration contributing to greater flexibility in LNG procurement.
August 2016: Began receiving LNG from the Gorgon LNG Project in Australia.
Continued construction of  four LNG tankers built to a new and highly economically efficient design capable of transiting the Panama Canal in order to transport LNG from Cove Point in the U.S. from 2017.
LNG under long-term contracts: 12 projects in 5 countries (as of end March 2017)
Contract volume: approx. 14.25 million tons (FY2016)
Proven global natural gas reserves: 186.6 trillion m3 
Source: "BP Statistical Review of World Energy 2017"
 
LNG Project Contract Volume (as of April 2017)
Project name Contract volume 
(Unit: 10,000 tons)
Start of operation Period
Brunei 100 1973 20+20+10 years (until 2023)
Malaysia1 (Satu) 260 1983 20+15 years
(until 2018)
Australia (Western Australia) 53 1989 20+8 years
(until 2017)
Malaysia2 (Dua) 90 1995 20 years
(until 2015)
Qatar 35 1998 24 years
(until 2021)
Malaysia3 (Tiga) 34 2004 20 years
(until 2024)
North West Shelf (NWS) Expansion 107 2004 25 years
(until 2029)
Darwin (Australia) 100 2006 17 years
(until 2022)
Sakhalin2 110 2009 24 years
(until 2031)
Pluto (Australia) 150 2012 15 years
(until 2025)
Queensland Curtis (Australia) 120 2015 20 years
(until 2035)
Gorgon (Australia) 110 2016 25 years
(until 2039)
Ichthys (Australia) 105
2017
(planned)
15 years
Cove Point (U.S.) 140
2017
(planned)
20 years
Cameron (U.S.)
Approx. 52
(8 cargoes)
2020 Approx. 20 years
Cameron (U.S.)
Approx. 20
(3 cargoes)
2020 Approx. 20 years
○
Diversification and expansion of overseas business

Promotion of overseas business
June 2016: Joined the Eagle Ford shale gas development project in the U.S.
Gas Malaysia Energy Advance Sdn. Bhd., a joint venture formed by Tokyo Gas, Tokyo Gas Engineering Solutions Corp., and Gas Malaysia Sdn. Bhd., began supplying energy services to a Toray Group plant in Malaysia.
Developed and actively participated in new projects utilizing local networks in Southeast Asia and North America.

○
Promotion of infrastructure development to accommodate wider use of natural gas Development of natural gas infrastructure in and around the northern Kanto area
Installed additional vaporizers at Onahama Satellite Terminal, Sodegaura LNG Terminal, and Hitachi LNG Terminal.
Continued preparations for construction of a second LNG tank at the Hitachi LNG Terminal, scheduled for completion in 2020.
Planned construction of a new tank at Sodegaura LNG Terminal.
Development of trunk lines
Began constructing the Koga-Moka Line to connect to our existing network, scheduled for completion in FY2017.
Formulated plans for construction of the Ibaraki Line (between Hitachi and Kamisu), slated for completion in FY2020.
○
Enhancement of competitive power generating capacity and expansion of electric power sales April 2016: Commenced study of a technological partnership on LNG power plant operation and maintenance with Kansai Electric Power Co., Inc., and reached agreement on pursuing such a partnership.
May 2016: Entered alliances with 45 wholesalers to sell low-voltage electricity to residential and commercial customers beyond our service area.
○


Key Future Initiatives from FY2017
Target
(CSR indicator)
Key initiatives
LNG procurement to ensure stable and affordable supply Further diversification of LNG procurement
Second half: Scheduled to begin receiving shipments from the Cove Point (U.S.) and Ichthys (Australia) projects.
Commencement of cargo swaps and other new forms of LNG trading to optimize transportation costs.
Exploration of partnerships with LNG players in Japan and overseas.
Diversification and promotion of overseas business Promotion of overseas business
Development of presence in mainly the mid- and downstream sectors in partnership with leading firms in Southeast Asian (such as PETRONAS in Malaysia and Pertamina in Indonesia).
Establishment of Manila Representative Office. Activities to win new projects in the Philippines.
Acquisition of new projects in the upstream and power generating sectors in North America.
Promotion of infrastructure development to accommodate wider use of natural gas Accommodation of growing gas demand in the northern Kanto area
Expansion of facilities at Hitachi LNG Terminal.
Enhancement of gas pipeline network to expand stable supply
Construction of Koga-Moka Line with a view to completion in fall 2017 (earlier than originally planned).
Selection of final route and commencement of construction of Ibaraki Line to improve supply stability and expand transportation capacity by adding further looping to our high-pressure pipeline network.
Enhancement of competitive power generating capacity and expansion of electric power sales Expansion of power generating capacity
Construction of Kobelco Power Moka plant.
Consideration of construction of new power plants, etc. to expand generating capacity.
Expansion of renewable generating capacity
Promotion of projects employing various business schemes to develop renewable generating capacity in general (including solar, wind, and biomass).
Establishment of Prominet Power Co., Ltd. to develop photovoltaic power generation projects.
Development of risk management arrangements
Establishment of Power Marketing & Trading Dept. and improvement of risk management techniques.
Risk control of both procurements and sales, and optimization of short- to mid-term procurement and sales portfolios.
Partnerships with gas wholesalers
Development of partnerships with city gas suppliers that form business alliances to sell low-voltage electricity, expansion of number of electricity service contracts, and rollout of Emergency Home Assist Service.
Development of partnerships with ENNET and Synergia Power, and study of arrangements to expand partner suppliers in the high-voltage sector.
Partnerships to promote total energy business
Strengthening of activities of Gas Network Consortium 21 (“Gasnet 21”).
Business alliance in the city gas business with Saisan (a memorandum of understanding to form a comprehensive alliance in the total energy business was signed with Saisan, an LPG supplier, in FY2016).
DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

The Pursuit of Safety

<Reasons for identification of material aspects>

  • To improve our readiness for a major earthquake and allow customers to use gas with greater peace of mind.
  • To enhance the energy security that supports safe and secure living.
  • To contribute to energy system innovation to support energy conservation and CO2 emissions reduction.

Performance in FY2016: Overview and Assessment
Criteria for evaluating indicators
○
Target achieved (100% or above)
△
Target not achieved but improved from previous fiscal year (not 100% achieved but improved from previous fiscal year)
×
Target not achieved
*
Qualitative indicators with no evaluation axis are evaluated on the basis of whether or not progress has been made since the previous fiscal year.
Target
(CSR indicator)
FY2016 results Evaluation
Implementation of measures against earthquake, tsunami, and other disasters

Implementation of measures against earthquakes, tsunami, and other disasters to ensure greater disaster resilience and safe supply of gas

June 2016: Divided the large head office block into smaller blocks, increasing the number of low-pressure blocks from 220 to 252.

Response to disasters

April 2016: Sent a Service Restoration Task Force of 1,300 personnel to assist recovery following the Kumamoto earthquakes.

○
Replacement and improvement of safety of aging gas pipes Implementation of safety measures, including measures for aging pipes
Raised awareness of aging buried white gas house pipes that did not undergo work in FY2015 by mentioning the issue during safety inspections and on similar occasions, and performed improvement work upon request.
○
Improvement of disaster resilience 

Promotion of switch to safer appliances

Promotion of switch to safer appliances

Expanded adoption of "Si" sensor-equipped cooking stoves.
Total sales of about 1.67 million units (as of end March 2017)

Owners of water and bath boilers, etc. lacking safety devices to prevent imperfect combustion were encouraged to switch to safer appliances as soon as possible by informing them of the risks by direct mail and during periodic safety inspections of gas appliances.

Periodic safety inspections
3,869 thousand periodic safety inspection visits were made in FY2016 and 3,516 thousand inspections were completed (excludes visits when the occupant was absent).
Arrangements were introduced to make periodic safety inspections more convenient for customers, including by increasing the number of Saturday personnel in order to accommodate customer requests for changes to inspection dates, and notification of customers by phone before arrival.

○


Key Future Initiatives from FY2017
Target
(CSR indicator)
Key initiatives
Implementation of measures against earthquake, tsunami, and other disasters Implementation of measures against earthquakes, tsunami, and other disasters to ensure greater disaster resilience and safe supply of gas
■Implementation of disaster drills with retail suppliers to ensure safety in the event of a disaster.
■Sub-division of disaster prevention blocks
Replacement and improvement of safety of aging gas pipes

Implementation of safety measures, including measures for aging pipes

■Will raise awareness of aging buried white gas house pipes that did not undergo work in FY2015 by mentioning the issue during safety inspections and on similar occasions, and perform improvement work upon request.
Improvement of disaster resilience 

Promotion of switch to safer appliances

Promotion of switch to safer appliances

■Promotion of adoption of “Si” sensor-equipped cooking stoves and encouragement of owners of water and bath boilers, etc. lacking safety devices to prevent imperfect combustion to switch to safer appliances as soon as possible by informing them of the risks by direct mail and during periodic safety inspections of gas appliances.

Periodic safety inspections

■Performance of periodic safety inspections and creation of more opportunities for contact with customers
DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Provision of Better Products and Services

<Reasons for identification of material aspects>

To provide information proactively and deliver better products and services based on customer feedback, thereby enabling customers to use energy safely, securely, and comfortably in keeping with the intent of electricity and gas system reforms.

Performance in FY2016: Overview and Assessment
Criteria for evaluating indicators

○
Target achieved (100% or above)
△
Target not achieved but improved from previous fiscal year (not 100% achieved but improved from previous fiscal year)
×
Target not achieved
*
Qualitative indicators with no evaluation axis are evaluated on the basis of whether or not progress has been made since the previous fiscal year.
Target
(CSR indicator)
FY2016 results Evaluation
Provision of products, services, and related information Response to full liberalization of the electricity retail market
March 2017: Number of applications for electricity service reached approximately 728 thousand. Tokyo Gas’s electricity and other services were publicized (largely through direct promotion by LIFEVAL and Enesta) and steps taken to expand our partners and win more contracts.
 
 
Promotion of wider use of ENE-FARM ("EF") residential fuel cells
ENE-FARM units sold (approx.)
FY2014 14,000
FY2015 18,000
FY2016 18,100
Cumulative units sold 79,500

Expansion of use of gas cogeneration systems (CGS), commercial gas air conditioners, etc.
<CGS>
April: Commenced development of a 2 MW-class high-efficiency CGS.
June: Installed the Tokyo Gas service area’s first cold energy extraction-type gas pressure differential power system at Toyosu Smart Energy Center.
December: Improved the performance of a 1 MW-class CGS and launched an improved model in FY2017.

<Air conditioners>
April: Commenced sale in April 2016 of a 30 hp Smart Multi, Japan’s first air-conditioning system to combine a gas heat pump and electric heat pump into one refrigerant system.
Our ENESINFO remote control system permits energy and cost savings to be achieved by optimizing the balance of use of the gas and electric heat pumps.
 
  CGS capacity developed
(MW)
Commercial gas air-conditioning capacity developed
(RT)
FY2014 60 150,000
FY2015 60 150,000
FY2016 90 160,000
Stock 2020 3,920,000

Initiatives by Tokyo Gas LIFEVAL
Acted as a one-stop source of home-related services, including periodic safety inspections of gas appliances, meter reading, commencement and termination of gas services, and processing of applications for gas and electricity services, as well as the sale, repair, and installation of gas appliances and performance of kitchen, living room and plumbing renovation work.
 
Use of customer feedback and action to improve operations
20,250 comments received in total from customers
 (1,781 expressions of thanks (8.8%), 1,772 complaints (8.8%), and 16,697 system requests (82.4%))
Customer feedback was used to identify and analyze issues and improve rate-related operations, arrangements for handling inquiries and applications (by phone and online), and patrol work. Examples of improvements made were published on our website.
 
Construction of a group formation
April 2016: Established Tokyo Gas Liquid Holdings Co., Ltd. to unify the sale of LPG, production and sale of industrial gas using cold energy of LNG, and cold storage operations, etc.

May 2016: Chiba Gas, Tsukuba Gakuen Gas, and Miho Gas were merged into Tokyo Gas, and two new branch offices (Sakura Branch Office and Tsukuba Branch Office) were opened.
 
Provision of useful information to customers
April 2016: The UCHICOTO information site was launched to provide useful home and lifestyle information.
Link: UCHICOTO
○


Key Future Initiatives from FY2017
Target
(CSR indicator)
Key initiatives
Provision of products, services, and related information Expansion of gas, electricity, and other services to residential customers
Creation of new Always Gas selection of gas rate options for residential customers.
Launch of competitive rates and services offered through the Total Energy Service Plan (Always Gas and Always Electricity).
Launch of Gas Fixture Troubleshooting Support and Residential Monitoring Services.
 
Promotion of wider use of ENE-FARM ("EF") residential fuel cells
In the detached house market, we will continue to work on expanding installation by major custom and spec home builders, and will use the opportunities created by selling electricity to customers to encourage installation in existing homes.
In the condominium market, we will pursue steady adoption in properties completed in FY2017 while adjusting logistics, installation, and maintenance specifications and systems. As well as promoting "whole building" installation, we will also expand the total number of installations by offering "partial" solutions that allow EFs to be installed in just some of the dwellings in a building.
 
Expansion of adoption of CGS, commercial air conditioners, etc.
Development of a high-efficiency GHP chiller that is approximately 20% more efficient than conventional models. Scheduled to go on sale in October 2017.
24 hp model and 30 hp model (the latter combining a gas heat pump and electric heat pump) to be added to the Smart Multi lineup and go on sale in October 2017.
Development of a super-efficient commercial fuel cell cogeneration system. Scheduled to go on sale in FY2017.
Development of a 2 MW-class high-efficiency gas engine cogeneration system. Scheduled to go on sale in FY2017.
 
Initiatives by Tokyo Gas LIFEVAL, Enesta, and Enefit
We will value communication with our customers, and together with solving various customer problems will organize events that allow them to see, feel, and experience gas appliances in actual use.
Proposal of plans tailored to customer lifestyles and needs through channels including LIFEVAL, Enesta, and Enefit’s interactions with customers, partnerships with players in the housing sector, and other opportunities for customer contact.
 
Use of customer feedback and action to improve operations
We will continue to work to raise customer satisfaction by identifying and analyzing issues and formulating and implementing improvements based on customer feedback.
 
Provision of useful information to customers
Distribution of official app for the myTOKYOGAS online members’ program
DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.