Tokyogasgroup csr report

New Era of Natural Gas and Renewable Energy

According to a report published by the International Energy Agency (IEA) in March 2019, global CO2 emissions reached a record high in 2018. While the use of renewable energy grew rapidly by 10%, it cannot keep up with the growth in electricity demand.
Under these circumstances, we have seen a dramatic rise in demand for natural gas worldwide, which the Tokyo Gas Group has been supplying for as long as 50 years. This clean energy source could help counter climate change because it generates lower CO2 emissions, linked to global warming, compared to other fossil fuels such as oil and coal. There are abundant reserves of natural gas, and it is both affordable and reliable as a source of energy. With the recent shale gas revolution, the use of natural gas is expected to expand, as it could bolster energy security while balancing the needs of environmental preservation and economic growth.
Moreover, natural gas-fueled power plants can reach full output in minutes, which raises another potential of natural gas as a backup power source for intermittent renewable power generation. It will remain an important source of energy until we realize a low-carbon society, which is why the first half of the 21st century is described as the era of renewable energy and natural gas.
The IEA predicts that demand for natural gas will rise by approximately 43% from 2017 to 2040, with particularly robust demand from developing countries such as China as well as other nations in Asia and the Middle East. The Tokyo Gas Group is committed to expanding its LNG network while building a natural gas infrastructure and basing the development of its value chain on its accumulated technology and experience in order to reliably provide sustainable, clean energy to meet global demand over the next half century.
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.

Introduction of LNG Shifted Japan’s Energy Environment

First imported to Japan by Tokyo Gas in 1969 and thereafter spreading throughout the country, LNG (liquefied natural gas) is produced by cooling natural gas to its liquid state at −162°C. Its cubic volume is diminished by 600 times in liquid state, allowing massive quantities of natural gas to be transported on LNG vessels.
As Japan entered the post-World War II period of economic recovery in the 1960s, high economic growth dramatically increased demand for energy, raising the expansion of supply capacity to a top priority. In addition, air pollutants associated with the use of oil, the predominant fuel at the time, had become problematic. To address this, Tokyo Gas began considering natural gas, which offers high calorific value and excellent environmental performance, and decided to import natural gas in its liquefied state on LNG vessels, the best method for transporting gas to Japan as an island nation.
Introducing commercial LNG was an unprecedented operation requiring a focus on all our resources on three projects: building an LNG receiving terminal; constructing a main looped pipeline network through the Tokyo metropolitan area; and adjusting the calorific value of customers’ equipment. The experience gained as an LNG pioneer became a major asset for the Tokyo Gas Group.
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.

Transferring 50 Years of Technology and Expertise Abroad

The Tokyo Gas Group has been engaged in the design, construction, operation, and maintenance of facilities for receiving LNG as well as producing and supplying city gas for the past 50 years. We began providing our know-how and technology to overseas business operators, starting with the construction of gas holders in Taiwan in 1980. The accumulated experience from various projects enabled us to develop a track record that has supported our expansion into the consultancy business. Today, we provide overall management of LNG terminal construction projects.

Tokyo Gas Engineering Solutions Corporation currently provides project management consultancy (PMC) services for the construction of the Nong Fab LNG Receiving Terminal in Thailand under contract from the PTT LNG Company Limited (PTTLNG).

This is the second PMC contract we have been awarded by PTTLNG. We are providing overall management for the project on behalf of PTTLNG to facilitate the design, procurement, construction, and test operation of the LNG Receiving Terminal.

Under the contract, we are responsible for engineering the entire process of constructing the terminal, from the initial stage of selecting the site to determining terminal specifications and choosing subcontractors for its design and construction.

Voice

The Tokyo Gas Group possesses the expertise and experience that is only obtainable through operating a terminal. Additionally, it has developed its ability to solve problems under resource constraints to continue the supply of gas. Our mission does not end with building a terminal but rather extends to anticipating what could happen during its subsequent operation. We believe that having this perspective has represented our greatest advantage in working with customers. It is a strength which has earned us recognition by satisfied customers, who repeatedly choose to do business with the Tokyo Gas Group.
Thailand had been using natural gas produced domestically to power development of its social infrastructure. A decline in its gas reserves, however, has created the need for an alternative source of energy. While coal-fired power generation is also under consideration, Thailand is highly environmentally conscious, giving LNG the upper hand. A similar trend is also seen elsewhere in Asia, where LNG has become the foundation for sustaining the necessary infrastructure for the economic and daily livelihood of each nation.
We hope to continue supporting these countries by handing down our experience to the next generation and seeking to develop our business further.

Shingo Arai General Manager, Engineering Dept., Overseas Business Div., Tokyo Gas Engineering Solutions Corporation Shingo Arai
General Manager, Engineering Dept.,
Overseas Business Div.,
Tokyo Gas Engineering Solutions Corporation

Nong Fab LNG Receiving Terminal

Nong Fab LNG Receiving Terminal

Nong Fab LNG Receiving Terminal

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.

Expanding Our Global LNG Network

The LNG market has significantly evolved over recent years. Until recently, LNG transactions were predominantly based on long-term contracts linked to crude oil prices that placed restrictions on the destination and prohibited resale to a third party. Nevertheless, factors such as the rise in demand primarily from Asia and higher production volume due to the U.S. shale gas revolution have led to a shift from conventional long-term contracts linked to crude oil prices to far more flexible transactions.

Consequently, Tokyo Gas has sought to secure stable supply and competitive pricing by increasing procurement linked to natural gas prices in the US market and transactions based on contracts with no restrictions on the destination. At the same time, we are collaborating with energy companies in Asia and Europe to develop an LNG network that connects markets in Europe, Asia, and North America.
In 2016, Tokyo Gas Co., Ltd. entered into a cooperative agreement with Centrica plc., a leading UK-based energy company. Specifically, we are promoting a scheme under which Tokyo Gas sells LNG procured from the United States to Centrica, while Centrica sells LNG procured in Asia to Tokyo Gas. This arrangement will not only allow for a flexible adjustment of demand and supply but also reduce greenhouse gas emissions and transportation costs by shortening LNG transport distances.
The agreement was made possible through our ongoing effort to allow for greater flexibility in LNG procurement contracts. Such contracts are also expected to correct the imbalance in global pricing for natural gas and LNG.

Voice

On a global scale, the natural gas market is largely divided into the three regions of Asia, Europe, and North America, where each market determines the price of LNG, resulting in disparities from one to the other. The construction of an LNG network connecting Europe with North America, however, has increased the liquidity of LNG transactions, and regional disparities in prices have begun to diminish, driven by the principles of competition. Japan is a major LNG importer that accounts for a quarter of the global demand for LNG. We believe that we can reduce material prices and achieve greater flexibility in adjusting demand and supply by expanding our LNG network. Raising market liquidity will also lead to the development and expansion of a global LNG market.

Saori Hoshino Manager, LNG Trading Sect., Gas Resources Dept., Tokyo Gas Co., Ltd. Saori Hoshino
Manager, LNG Trading Sect.,
Gas Resources Dept.,
Tokyo Gas Co., Ltd.

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.

Developing Society and Solving Problems through the LNG Business

In the 50 years since we introduced LNG to Japan, the experience and efforts accumulated by Tokyo Gas have provided global benefits and particularly contributed to the introduction and expansion of LNG in South East Asia. Our contribution enables the attainment of several Sustainable Development Goals (SDGs), namely “Goal 7: Affordable and clean energy,” “Goal 9: Industries, innovation and infrastructure” and “Goal 17: Partnership for the Goals.” Over the next 50 years, the Tokyo Gas Group will remain committed to advancing into rapidly developing countries and invigorating the LNG market by establishing an infrastructure that includes construction of LNG terminals and LNG network.
 

7 AFFORDABLE AND CLEAN ENERGY 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE 17 PARTNERSHIPS FOR THE GOALS
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.