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Business overview

Gas business

INVISIBLE ASSETS
P51

Safe and stable energy
supply infrastructure
Contributing to the achievement of Sustainable Development Goals (SDGs)

We are working to secure diversity in our LNG procurement and stable transport, serving as the safe and stable energy supply
infrastructure for more than 11 million customers in the greater Tokyo area. We boast city gas production and supply facilities
with sufficient quake resistance to withstand tremors comparable with those in the 2011 Great East Japan Earthquake. We
also engage in a wide variety of actions that include segmentation of the pipeline network for minimizing the impact of supply
stoppages in the event of disasters, monitoring at normal times for ensuring safety in gas utilization, and the establishment ofa system for staff deployment in case of an emergency.

Diversifying LNG procurement and achieving efficient andstable transportation of LNG
Diversifying procurement sources
We procure LNG from 14 projects in 6countries, including the United States aswell as Southeast Asia and Australia
Ensuring stable transportation of LNG
We utilize our own fleet of 13 ships, owned
and managed by Tokyo GasNatural gas reserves are abundant in various parts of the world. The Tokyo Gas
Group was among the first to notice the potential of natural gas, and in 1969
we became the first in Japan to import LNG from Alaska.
To achieve stable procurement of LNG, by seeking to diversify ourprocurement sources (resource suppliers), we are working to ensure thatinterferences to LNG procurement do not arise, even in cases where there areevident geopolitical risks such as disasters or human conflicts. We also
operate stable transportation of LNG through the efficient deployment of ships(including ships owned and managed by Tokyo Gas).

Safe and secure production and supply facilities
Four LNG terminals(Three in Tokyo Bay, one in Northern Kanto)
Pipeline network with total length of over
60,000 km
High level of resistance to seismic
activity, even in the case of major
earthquakes such as the Great
Hanshin-Awaji (Kobe) Earthquake, orthe Great East Japan Earthquake(High- and medium-pressure gas pipelines)

We import LNG by tankers and store it in tanks at LNG terminals. It is thenreconverted into gas and adjusted in calorific value to produce city gas, andsupplied to 11 million customers via our pipeline network. Based on almost 50years of experience and knowledge since our introduction of LNG to Japan in1969, we adopted structural designs with superior anti-seismic properties for
LNG terminals, and introduced materials that are resilient to ground deformation
to our pipeline network. This ensures a high level of quake resistance for theinfrastructure. Since city gas is made by conversion from LNG to natural gas at
an LNG terminal and then distributed via pipeline, there is no energy conversion
loss or transport loss to the point of consumption.

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TOKYO GAS INTEGRATED REPORT 2019

Division of the low-pressure
pipeline network

Safety know-how and measures
to prevent earthquake disasters

Approximately 300 lowpressure blocks

Division of the mediumpressure pipeline network

130 years of accumulated safety know-how

Over 25 mediumpressure blocks

Monitoring using around 4,000 seismometers(Si sensors) in supply area
Subdivision of units for supply stoppage inthe event of an earthquake or other disasters(Over 25 large blocks, further subdivided intoapprox. 300 smaller blocks)

In order to constantly deliver natural gas safely and steadily to over 11 million customers, we are continually developing humanresources involved in safety. It is indispensable to have human resources that are equipped with advanced specialized skills in
facility design, construction, and maintenance, as well as decision-making capabilities that enable the reliable execution of gas
supply and safety responsibilities even in times of emergency. The trust of customers that has been earned as a result of safetyrelated expertise developed over the course of our long history, and its continuation, is one of our greatest strengths.
We have also developed a disaster-readiness system, which protects entire local areas by automatically cutting off the supplyof gas when it detects an earthquake that poses the possibility of affecting our pipeline network and/or other structures. In orderto minimize the impact of supply stoppages, we subdivide our supply areas, enabling us to stop the supply of gas remotely, inblock units, depending on the extent of the damage.

Facilitating safe use of gas
Safety inspections of gas facilities
Monitoring and control of the status of operationof city gas production and supply facilities
Readiness for swift emergency dispatch inresponse to gas leak reports

Periodic Safety inspections
We conduct periodic safety inspectionsof gas-related equipment and facilities
for all customers, as frequently asrequired by law. We visit customers to
conduct inspections for gas leaks oncustomer premises (as a general gas
pipeline operator), and to examine gas
appliances and supply and exhaustequipment (as a gas retailer).

Supply Command Center

Gaslight 24(Monitoring and control at normal times)(Emergency response actions)

The Supply Command Center performs
24/7 monitoring and control on thestatus of operation of city gas
production and supply facilities. It
facilitates the analysis of damage,remote operation to stop gas supply andother initial actions for preventing
secondary damage following anearthquake. It conducts around 100
initial action drills per year.

The Safety Command Center receivesgas leak reports from customers. It
receives information about theirsituations without omission to give
safety advice and to ask Gaslight 24 tosend personnel. Gaslight 24 operates
emergency dispatch bases forprevention of accidents such as arisingfrom gas leaks. Upon receipt of a report,
its personnel will immediately visit thereporting customer to take swift action
even on holidays or at night.