Our Position in the Market
Tokyo Gas’ Service Area
(As of March 31, 1999)
Tokyo Gas is Japan’s largest gas company both in terms of the number ofpeople. Tokyo’s position as the locus of Japanese commerce—many compa-customers—roughly 9 million in total—and gas sales volume—more thannies are headquartered here—makes our service area even more vibrant.

3

9.2 billion m of gas was sold in the fiscal year ended March 2002. Our

What’s more, the Kanto region is Japan’s most industrialized area, accounting

service area covers approximately 3,100 square kilometers in Tokyo andfor 40% of Japan’s GDP. Gas demand is expected to increase steadily inneighboring prefectures. We serve the heart of the Kanto region, the largest

this enormous and economically diverse service area.

and most densely populated region in Japan with a total of some 40 million

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, 2002)
Unit: thousands of m3 (46.05 MJ/m3)

Unit: million m3 (46.05 MJ/m3)(As of March 31, 2002)

12,00010,000Wholesale16

Wholesale
950,953
8,000

Industrial
24,803

6,000

4,000

Residential
3,072,583
Commercial
2,283,839

Industrial
2,911,602

Japan ...................... 23,095,822
Tokyo Gas ....................

2,000

0Mar. 31 98

99

Residential

9,218,978

00

0102

03

04

Commercial

05

06

07

Industrial

Wholesale* The above three graphs represent non-consolidated data.

Residential
8,445,017

Commercial
574,363

Japan ...................... 26,368,883
Tokyo Gas ....................

9,044,199

Note: 2003~2007 are projected figures.

Tokyo Gas’ Role in the Market
Ensuring a stable, secure, continuous and diversified energy supply cen-2007. This exceeds growth forecasts for other energy sources and the Japa-

tered on natural gas is our main corporate mission. Tokyo Gas will con-nese economy as a whole.

tinue to supply competitively priced natural gas in response to diversifying
market needs.

At Tokyo Gas, natural gas is positioned as the cornerstone of thecompany’s energy and energy-related operations. Building on this strong

Today, with the importance of clean-burning natural gas increasing amidfoundation, Tokyo Gas is aiming to evolve as a total energy provider,heightening interest in environmental issues, Tokyo Gas’ role is growing all

supplying heat and electricity as well as gas, and value-added energy-the time. Prospects are bright. Average growth in gas demand of 5.9% per

related services.

annum is forecast in our service area through the fiscal year ending March

Main Lines of Business

The Flow of Tokyo Gas’ Business

LNG ExportingCountries

LNG Carrier

LNG
Receiving
Terminal

Pipeline Network

Gas BusinessTokyo Gas LNG Imports(Year ended March 31, 2002)(Million tons)

AlaskaAustralia
BruneiIndonesia
MalaysiaQatarTotal

29951208434030698

2 TOKYO GAS Annual Report 2002

Electricity Business

Energy-Related
Business

The Nature of the Gas Business in Japan
Japan has around 230 city gas companies, with the three largest accounting

Approximately 90% of the city gas consumed in Japan is made fromfor roughly 80% of total gas sales volume. In addition to the small- andnatural gas, most of which is imported in the form of LNG. Presently, only amedium-sized gas companies, there are roughly 1,800 specific area gas

few companies receive LNG and produce gas. Gas companies own pipelines

suppliers and approximately 30,000 LPG companies, most of whom areas well as supply and sell gas within their own respective service areas. It isalso comparatively small. The industry is thus divided into two clear camps—

also noteworthy to mention that a nationwide pipeline network does not

the three large operators and all the others.

presently exist in Japan.

TOKYO GASTokyo Gas’ Service Area and Pipeline Network
Utsunomiya

Gunma

Tochigi

Moka

HitachiTochigi Line (2006)
Sano
Kumagaya-Sano Line (2004)
Kumagaya

Ibaraki

Saitama

Chiba

TokyoHeadHeadOfficeTokyoBayKanagawa

Ohgishima
LNG Terminal

Sodegaura
LNG Terminal

Negishi LNG Terminal

Minamiashigara
High-pressure transmission pipelines
High-pressure transmission pipelines(Under construction)(Length of pipeline: 48,646km, as of March 31, 2002)

Medium-pressure transmission pipelines( ) Proposed year of completion
Tokyo Gas’ service area
Tokyo Gas’ direct and indirect wholesale area

Annual Report 2002 TOKYO GAS 3