Our Positionin the Market

Tokyo Gas’ Service Area
(As of March 31, 1999)

Tokyo Gas is Japan’s largest gas company both interms of the number of customers—over 8.5 million
in total—and gas sales volume. Our service area
KANTO PLAIN

covers 3,129 square kilometers in Tokyo and neighboring prefectures, in the heart of the Kanto region,
the largest and most densely populated region inJapan with a total of some 40 million people. Tokyo’sposition as the locus of Japanese commerce—TOKYOmany companies are headquartered here—makes ourTOKYO BAY

service area even more vibrant.
What’s more, the Kanto region

Ohgishima
LNG Terminal

is Japan’s most industrialized

YOKOHAMAarea, accounting for 36% ofNegishi
LNG Terminal

Japan’s GDP. This enormous
2Sodegaura
LNG Terminaland economically diverse service area is thus unquestionably a key strength.
0

10 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, 1999)
Unit: thousands of m3 (46.047 MJ/m3)

Unit: million m3 (46.047 MJ/m3)(As of March 31, 1999)

12,000Wholesale15
Industrial
25,06010,000Wholesale
800,291

8,000
6,000
Residential
2,952,945
Industrial
2,386,105

Commercial
2,018,912

4,000
Commercial
582,1772,0000Mar. 31

95 96 97 98 99 00 01 02 03 04

Japan ...................... 20,615,962

Residential

Tokyo Gas .................... 8,158,254

WholesaleCommercial

Industrial

Note: 2000~2004 are projected figures.
* The above three graphs represent non-consolidated data.

TOKYO GAS Annual Report 1999

Japan ...................... 25,238,612
Tokyo Gas ...................... 8,582,508

Residential
7,975,256

Natural Gas—Energy of the Future

Tokyo Gas’ Role in the Market

Natural gas has emerged as a main source of energy

Ensuring a stable, diverse and long-term energy sup-because it is both environmentally friendly and re-ply is our main corporate mission. We are presently

serves are spread throughout the world. Comparedimporting LNG from six major natural gas exportingto oil reserves, roughly 60% of which are concen-

areas: Alaska, Brunei, Malaysia, Australia, Indonesia

trated in the Middle East, natural gas is found world-and Qatar. All imports are based on long-term con-wide, including North America, Southeast Asia,tracts. We have thus secured a stable and diverse sup-Australia and Russia. Natural gas reserves are also

ply of LNG, which gives us a competitive advantage

expected to last longer than those of oil. Demand forin the energy market. Tokyo Gas has considerable

natural gas is projected to grow by 18%, comparedexpertise and knowledge concerning LNG, having

to 1996, by 2010 according to the Ministry of Inter-been the first Japanese company to import this en-

national Trade and Industry (MITI) report entitledergy from Alaska in 1969.

Long-term Energy Demand and Supply Outlook forComplementing this procurement capability are ourJapan (1998). Overall energy demand, by compari-production systems—centering on the world’s largest

son, is predicted to increase 3%. Spurring this growthand most technologically advanced LNG receiving

are the goals adopted at COP3, the Third Conference

terminals—and transmission and distribution network.

of the Parties to the United Nations Framework

By leveraging the sum of these parts, we aim toConvention on Climate Change.

carve out an even stronger position in Japan’s energy
sector. Prospects are bright. Average growth in demandof 6.5% per annum is forecast for Tokyo Gas’ gas sales
3

volume until 2003.

Global Natural Gas Procurement
Japan imported approximately 50 million tons of LNG in the year ended March 31, 1999. Tokyo Gas accounted for roughly 6.1 million tonsof those imports.

AlaskaTokyo
Qatar
Tokyo Gas LNG Imports(Year ended March 31, 1999)(Million tons)

BruneiMalaysia

Indonesia

Australia

Alaska .......................................... 0.29
Australia ....................................... 0.70
Brunei .......................................... 1.09
Indonesia ..................................... 0.79
Malaysia ...................................... 3.16
Qatar ........................................... 0.12

(5%)
(11%)
(18%)
(13%)
(51%)
(2%)

Total ..................................... 6.15 (100%)

Annual Report 1999 TOKYO GAS