We effectively use the increased number of overseas facilities and personnel and intend to stabilize and boost earnings. We are striving to maximize the value of our projects, primarily in Southeast Asia, North America, and Australia, and join new projects while considering the development of businesses in new sectors and locations.
Overview of Our Overseas Business
Building on our accumulated experience in developing natural gas and LNG businesses in Japan and elsewhere, we will provide overseas customers with the same advantages, such as stable energy supply and energy saving services. We will particularly raise the proportion of midstream and downstream operations, which include constructing natural gas and LNG infrastructure and supplying gas in Southeast Asia, and participate in shale gas development and power generation projects in North America to help reduce environmental impact through the use of natural gas.
Tres Mesas 3 wind farm
Business Development in Southeast Asia
In Southeast Asia, demand for natural gas is projected to rise along with the region’s economic growth. To meet this demand, we will collaborate with leading local companies to accelerate business development focused on midstream and downstream operations. We will popularize and expand the use of LNG as an environmentally sound source of energy and leverage our technology and expertise to support the construction of infrastructure.
In December 2018, we signed a joint venture agreement on the construction and operation of an LNG receiving terminal with First Gen Corporation of the Republic of the Philippines. This is the first time for us to participate in an energy infrastructure development project in the country. The Philippines is planning to introduce LNG as an alternative to domestic natural gas, which is projected to decline in terms of production volume as domestic reserves are depleted. Tokyo Gas and First Gen will work together in building and operating the country’s first LNG receiving terminal.
In January 2018, Tokyo Gas Asia Pte. Ltd. invested in a natural gas distribution company in Thailand, which in December of that year became the first fully private company in the country to start supplying gas to industrial customers within an industrial estate. The industrial estate is located in the Eastern Economic Corridor (EEC), a special economic zone designated by the Thai government for promoting investment. Various companies, including non-Japanese, are eager to enter the industrial estate. Tokyo Gas and Tokyo Gas Asia will seek to expand the gas distribution business there by leveraging know-how on gas distribution backed by years of experience and a successful track record in Japan, together with expertise in managing an LNG value chain, including energy solutions, operational maintenance, and sales support.
Tokyo Gas Engineering Solutions Corporation (TGES) provides engineering solutions in and outside of Japan on the basis of its proprietary users’ know-how acquired through designing, constructing, operating, and maintaining LNG receiving terminals and city gas supply facilities. Highly regarded for its advanced technology, TGES is currently providing project management consultancy for the construction work of the Nong Fab LNG Receiving Terminal (7.5 million tons/year) in Thailand. This is the second contract awarded by PTT LNG Company Limited, following the construction of the Map Ta Phut LNG Receiving Terminal. The LNG receiving terminals form part of the plans of PTT Public Company Limited, the parent firm of PTT LNG, to boost its capacity for receiving LNG by 2023 and help establish an energy infrastructure in Thailand. TGES is also leveraging its wealth of knowledge and track record in Japan to expand its energy services in the United States and Malaysia, serving Japanese companies venturing abroad by providing a one-stop energy service for saving energy and reducing CO2 emissions. It is committed to actively expanding its operations outside Japan to play its part in supplying natural gas and other environmentally sound energy sources to overseas markets.