Our Positionin the Market

Tokyo Gas’ Service Area
(As of March 31, 2000)

Tokyo Gas is Japan’s largest gas company both in termsof the number of customers—over 8.7 million in total—and gas sales volume. Our service area covers approxiKANTO PLAIN

mately 3,200 square kilometers in Tokyo and neighboring
prefectures. It is located in the heart of the Kanto region,
the largest and most densely populated region in Japan
with a total of some 40 million people. Tokyo’s position
as the locus of Japanese commerce—many companies areheadquartered here—makes ourTOKYOservice area even more vibrant.
What’s more, the Kanto region isTOKYO BAYOhgishima
LNG Terminal

Japan’s most industrialized area,
accounting for 38% of Japan’s

YOKOHAMA

GDP. This enormous and economically diverse service area is thus

NegishiLNG Terminal

unquestionably a key strength.

Sodegaura
LNG Terminal

2010 15 20（km）

5

Gas Sales Volume in Japan andTokyo Gas by Sector

Growth in Tokyo Gas
Gas Sales Volume by Sector

Number of Gas Customers in Japanand Tokyo Gas Customers(Year ended March 31, 2000)
Unit: thousands of m3 (46.047 MJ/m3)

Unit: million m3 (46.047 MJ/m3)(As of March 31, 2000)

12,000Wholesale
848,499

10,000Wholesale
14

8,000

Industrial
24,862

6,000
4,000

Industrial
2,430,787

Residential
2,993,891

2,000

Commercial
2,144,400

0Commercial
578,532

Mar. 31

96 97 98 99 00 01 02 03 04 05

Japan ...................... 21,773,667

Residential

Tokyo Gas .................... 8,417,577

WholesaleCommercial

Industrial

Note: 2001~2005 are projected figures.
* The above three graphs represent non-consolidated data.

TOKYO GAS Annual Report 2000

Japan ...................... 25,614,006
Tokyo Gas ...................... 8,715,256

Residential
8,111,848

Natural Gas—Energy of the Future

Malaysia, Australia, Indonesia and Qatar. Tokyo Gas has

Natural gas has emerged as a main source of energy because

considerable expertise and knowledge concerning LNG,

it is both environmentally friendly and reserves are spread

having been the first Japanese company to import this energy

throughout the world. Compared to oil reserves, roughly 60%

resource from Alaska in 1969. Moving forward, Tokyo Gasof which are concentrated in the Middle East, natural gas isintends to continue to supply competitively priced natural

found worldwide, including North America, Southeast Asia,

gas in response to diversifying market needs.

Australia and Russia. Natural gas reserves are also expected

Complementing this procurement capability are ourto last longer than those of oil. Demand for natural gas is

production systems—centering on the world’s largest andprojected to grow by 18%, as compared to 1996, by 2010

most technologically advanced LNG receiving terminals—andaccording to the Ministry of International Trade and Industry

transmission and distribution network.

(MITI) report entitled Long-term Energy Demand and Supply

By leveraging the sum of these parts, we aim to carve out

Outlook for Japan (1998). Overall energy demand, by

an even stronger position in Japan’s energy sector. Prospects

comparison, is predicted to increase 3%. Presently, MITI isare bright. Average growth in demand of 6.6% per annum

revising this outlook due to a forecast decrease in supply ofis forecast for Tokyo Gas’ gas sales volume until the year

nuclear power following a recent accident at a nuclear facility

ending in March 2005. This represents a high growth rate inin Japan and growing opposition to the construction ofcomparison to growth forecasts for other energy sources andnuclear power plants. This trend spells a likely increase in

the Japanese economy as a whole.
At Tokyo Gas, natural gas is positioned as the corner-demand for natural gas.

stone of the company’s energy and energy-related operations.

Tokyo Gas’ Role in the Market

Ensuring a stable, diverse and long-term energy supply
centered on natural gas is our main corporate mission. We
are presently importing LNG based on long-term contracts

Building on this strong foundation, Tokyo Gas is aiming topower steady growth by evolving into a diversified energy
services company, supplying heat and electricity as well as gas.

from six major natural gas exporting areas: Alaska, Brunei,

Global Natural Gas Procurement
Japan imported approximately 52 million tons of LNG in the year ended March 31, 2000. Tokyo Gas accounted for roughly 6.2 million tonsof those imports.

AlaskaTokyo
Qatar
Tokyo Gas LNG Imports(Year ended March 31, 2000)(Million tons)

BruneiMalaysia

Indonesia

Australia

Alaska .......................................... 0.28
Australia ....................................... 0.67
Brunei .......................................... 1.02
Indonesia ..................................... 0.73
Malaysia ...................................... 3.13
Qatar ........................................... 0.36

(5%)
(11%)
(16%)
(12%)
(50%)
(6%)

Total ..................................... 6.19 (100%)

Annual Report 2000 TOKYO GAS

3