03

LNG 50th

Tokyo Gas was Japan’s first company todiscover the outstanding value of natural
gas and to overcome the challenges toachieve the introduction of LNG and help
resolve social issues.
Our predecessors’ sophisticatedbusiness judgment and courage motivatedthe next generation. Today, natural gas isa basic source of energy that supports theJapanese society and economy.

Social backgroundbehind LNG introduction

LNG
has changed society

Fifty years ago, natural gas, which was athird alternative in fossil fuels beyond
coal and oil, was introduced to bringabout dramatic changes to Japan’s
energy situation.
There were a number of unknown
challenges behind its introduction.

Actions towards
LNG introduction

Actions with an eye towards thewidespread use of LNG

The ceremony for signing along-term contract with theAlaska LNG Project

1960s

In the 1960s, Japan experienced a sharp risein energy demand following its population
growth and remarkable postwar
reconstruction. However, urban air and otherpollution had emerged as social issues andJapan faced an urgent need to shift fromconventional coal- and oil-based materials toenvironmentally friendly and reliable energy
sources for the future that would not impair
economic efficiency.
Tokyo Gas found liquefied natural gas(LNG) to be an optimal solution to thosesocial problems, because it was expected toattain both environmental friendliness andeconomic efficiency. The company decided
to introduce it.

1969

1964

Gas pipeline construction
The main loop natural gas pipeline was completed at 220 km in length,
surrounding the entire Kanto region.
A high-pressure pipe with a diameter of 750 mm was introduced. It was the first introductionof this type of pipeline in the Japanese city gas industry.

1971

1966

Terminal construction

Construction of Japan’s first LNG terminal was completed
The construction was so large in scale that it took
three years and involved a cumulative total of 230,000 workers.
Cutting-edge technologies in those days were incorporated to withstandultra-low temperatures.

The Polar Alaska

1969

1972

Procurement
Japan’s first LNG procurement
Joint purchase with Tokyo Electric Power(currently JERA)(A pioneering case of a joint purchase between acity gas company and an electric power company)
Attempt at mass transport by ship(with equipment that withstands -162°C)

Major energy shift:
Attempted 50 years ago

The introduction of LNG required
extensive efforts, including those forsecuring consent from the public andcooperation from customers as well as
actions to meet growing demand.
Tokyo Gas carried out these actions toaccomplish a major energy shift.

04TOKYO GAS INTEGRATED REPORT 2019Social and environmental issues
facing Japan

1

2

Response to soaring
energy demand following
economic developmentand population growth

A solution to social andenvironmental issues

3

Combating pollution
problems

Ensuring a stableenergy supply

LNG introduction

Withdraw from dependency on oil
and the Middle East
Ensuring stable supply
in the future

COLUMN

Natural gas(Gas)–162°cTemperature

Characteristics of natural gas led to higher transport efficiency
Natural gas transforms from gas into liquid, namely LNG, when it is chilled to -162°C. In the liquid state,
it is 1/600 of its volume in a gaseous state, which means higher efficiency in terms of transport. LNG is
imported efficiently from different places around the world with special LNG tankers that can withstandultra-low temperatures.

Cooling

1/600
Volume

LNG(Liquid)

1975

1977

Underwater main
pipeline construction
Globally unprecedented
underwater main pipeline crossing
Tokyo Bay was completed
After three years of consideration, themassive construction project took extra
four years.The work was done 24 hours
a day, under a two-shift system.

Chiba main pipeline work

Full completion of the calorific value change in thearea served by the Tokyo Higashi Branch Office

1988

Calorific value change
The change in calorific value for the then 5.5 million consumers in
the Greater Tokyo area took 17 years before it was completed.
Tokyo Gas staff visited customers one by one to change the calorific value of gas appliances. Later, as apioneering firm, Tokyo Gas helped at least 200 operators across the country with calorific value changes.

COLUMN

Calorific value change served social development
The calorific value change refers to an initiative for uniformly supplying natural gas 13A with a high calorificvalue. It was a large project joined by at least 200 operators nationwide to build a foundation for today’s city
gas operations. Tokyo Gas embarked on the change for all of its then 5.5 million customers in the Greater
Tokyo area in 1972. Over 17 years, and involving 7.8 million employees, it was decisive for the future of thecompany. The shift to the universal supply of high-calorie natural gas 13A doubled the supply volume using
the pipeline with the same diameter and length. This led to higher supply efficiency and eventually to social
development.

Appliance adjustment work forcalorific value change at acustomer’s residence

05LNG 50th

The introduction of LNG and the universal
supply of high-calorie natural gas 13A
improved the city gas supply capacityand facilitated the widespread use ofnatural gas. They also paved the way forthe advanced use of city gas. The
application was expanded fromconventional household consumption tobusiness and industrial use. City gas
acted as a driving force during the periodof rapid economic growth. Today,Southeast Asian countries, who areexporters of natural gas, are experiencing a soaring energy demand amid
their high-speed economic growth andthe introduction of LNG is spreading.
Tokyo Gas will contribute to social andeconomic development in Southeast
Asia by offering its technologies andexpertise in natural gas, LNG and city gas,
which has nurtured over the past 50 years.

LNG’s social impacts
20002010

Natural gas is a basic energy sourcethat supports society and theeconomy. It will play an increasingly
significant role in building a lowcarbon society.

A combination of renewableenergy with natural gas

For the next 50 years
Kashima Offshore Wind Power Generation (conceptual drawing)

COLUMN

Serving as an official partner in the category ofgas and gas utility services for the Tokyo 2020Olympic and Paralympic GamesTokyo Gas is an official partner in the category of gas and gas utility services for
the Tokyo 2020 Olympic and Paralympic Games. It will work for successful sporting
events by stably supplying energy, taking security and other actions. It will also
take part in model projects for advanced environmental cities in the Harumi district
and elsewhere to move forward with progressive efforts in terms of energy.

Natural gas is defined by the Japanese
government as an effective low-carbon
measure towards 2050 in its fifth Energy BasicPlan. It is expected to play a key role aroundthe world as well. When renewable energy,
which is susceptible to weather conditions, ispositioned as a core power source, natural gas
power generation will become significant for
two reasons. First, it can be flexibly operated.
Second, it has a limited environmental impact.
Expanded use of renewable energy will help
expand the effective use of natural gas.

06

TOKYO GAS INTEGRATED REPORT 2019

The rest of theMiddle East

13.1

COLUMN

1.9

38.9

Central AsiaEuropeQatar

LNG’s superiority

The United States

23.8

Iran

3.9

As a result of introducing andspreading the use of LNG, Tokyo Gas
attained both a stable supply ofenergy and contribution to theenvironment.

CanadaThe RussianFederation

31.9

11.9

China

6.1

24.7

Proven recoverable
natural gas reserve

Malaysia

2.4

The United
Arab Emirates
Africa

5.9

4.6

2.8

14.4

196.9

The rest of
Asia-PacificIndonesia

Central andSouth America

8.4

trillion m 3Australia

BP Statistical Review of World
Energy 2019

2.4

Eco-friendlinessStability of supply

Energy security improvement
There are natural gas reserves from which LNG is produced inmany different locations around the world that offer stableproduction and supply regardless of circumstances. In addition,technological progress has paved the way for the development ofshale gas. Today, it is said that natural gas reserves will be
sufficient to meet global energy demand for at least 200 years.

Contribution to the environment
Natural gas is clean and does not contain hazardous substances. Carbon
dioxide emissions from its combustion are lower than those from coal andoil. It is an effective energy source for carbon reduction.

Comparison of emissions
from combustion,in which a value of 100 indicates( emissions
from coal combustion )High transport efficiency
When natural gas is cooled to -162°C to form liquefied natural gas(LNG), its volume is around 1/600 of its usual size, facilitating
efficient mass transport.

Hiroshi Anzai, the thenpresident of Tokyo Gas shakes
hands with the then Governorof Tokyo Ryokichi Minobe
after the announcement of thecooperation on anti-pollution
initiatives of the Tokyo
Metropolitan Government.

Higher supply capacity
High in calorific value, LNG ensures a large supply capacity. It willthus meet future increases in demand and ensure stable supply.

CO 2100

CoalNOxSOx

100100(nitrogen oxide) (sulfur oxide)

Oil

807070Natural gas

604002020
Gas cogeneration system (CGS)
Waste heat that is difficult to use
City gas

Gas cogeneration system
A gas cogeneration system is a system underwhich city gas is burned to produce electric
power where it is used, while the heatgenerated from combustion is used for cooling,heating, hot water supply, steam generationand other purposes. It uses energy without
being wasteful to exhibit high total energy
efficiency, achieving energy conservation andCO 2 reduction. When combined with renewableenergy with unstable output, it helps disperse
energy systems and makes significant
contributions to the construction of a lowcarbon society.

(natural gas)70〜85％

Total energy
efficiency％

CGS Customers

LNG terminal

Primary sourceof energy

15〜30

Electric energy

100％

Exhaust heat that canbe put to effective use

30〜42％
30〜55％

Conventional system
Electricity(oil, coal and natural gas)

40％

Electric energy

40％

Customers

Thermal power plantPrimary sourcesof energy

Total energy efficiency

100％

60％

Unused exhaust heat,power transmission
loss and others* Calculated under the preconditions determined by Tokyo Gas

Tamachi SEN Park

Smart energy network (SEN)A smart energy network (SEN) is a regionalenergy network centered on a large, highefficiency gas cogeneration system that uses
ICT technology for providing and receiving heatand electric power to and from different
positions in an area according to the supply
and demand. Surplus heat and electricity aresupplied to places where they are needed to
optimize the demand-supply balance in thearea and to achieve energy conservation andCO 2 reduction. It also ensures the stableprocurement of energy in emergency situations.
Solutions to local environmental, disaster control
and other issues will increase real estate value.
*1 Smart Energy Network Energy Management System*2 Gas cogeneration system

SENEMS*1
Optimal control, central management and information distribution for energy supply
Elementary school(planning)

HotelOffices andcommercial facilities

Public facility

Sunlight

Nursery school

Hospital

Windpower
Fuel cells

Fuel cells

Pedestrian deck
District IISEN Center
CGS*2

Heatsource
equipment

District I
SEN Center
Interchangeof heatin an areaCGS*2

Heatsourceequipment

Supply to District I during a power failure (planned)
Information

Electricity

Heat

Water inundergroundtunnels