LNG Value Chain

Natural Gas
Resource Development

As well as ensuring the stable procurement of gas
resources, we aim to lower procurement prices in a bid toensure fair prices in the Asian market. To achieve these goals,
in addition to conventional large-scale projects we are pursuingunconventional sources of natural gas and actively taking
various upstream interests.

Overseas MidDownstream Operations

To allow for flexible resource procurement and to ensure fair
prices in the Asian market, we are leveraging both our power
generation businesses centered on natural gas and ourproprietary know-how and pushing forward with energy
services projects.

Developing Business throughthe LNG Value Chain
We aim to develop our business throughout the LNG value chain, maximizing value through linked
business spanning the procurement and transportation of LNG, the production and supply of citygas, and the provision of energy solutions.
Overview of Major Overseas Upstream Operations
Annual contracted quantity(Thousands of tons)

Commencementof project

DurationContract type1,000
1,500 –1,750
1,100

2006
2012
(2014)

17 years (–2022)
15 years
25 years

FOB
Ex-Ship, FOB
FOB

Queensland Curtis

1,200(2014)

20 years

Ex-Ship

Ichthys
Cordova
Barnett

1,050(2016)15 years

FOB

3.07
5.0
1.0
1.25 (Upstream)
2.5 (Midstream)
1.575—

Production—

—

3.75—

Production—

—

25.0

Project

DarwinPluto
GorgonUpstream interest(%)

Darwin LNG Project

Belgium, T-Power
Natural gas power project(Tokyo Gas interest: 26.66%) Capacity 425 MW

Tokyo

Malaysia, Gas Malaysia Sdn. Bhd.
City gas supply project(Tokyo Gas interest: 14.8%)

VietnamCommissioned FEED projectat LNG receiving terminal

Major Overseas Upstream Operations
Major Overseas Mid-Downstream Operations
New LNG project
Existing LNG project

4Tokyo Gas

Annual Report 2013

Procurement andTransportation
We import more than 12 million tons of LNG per year, based onlong-term contracts through 11 projects in 6 countries, centeredon politically stable regions.
We strive to keep transportation costs down by using ourown eight-tanker fleet efficiently to meet our own needs as well
as by providing transportation for other companies.

Tokyo Gas LNG Imports by Country
Thousands of tons

FYLocation

20102011

2012

Composition

Malaysia

4,479

4,479

4,409

(34.7%)

Australia

2,297

2,264

3,379(26.6%)

Brunei

1,155

1,362

1,439(11.3%)

Indonesia

843

1,011835(6.5%)

Russia

1,605

1,678

1,682(13.2%)

Qatar

358

290

235(1.9%)

Alaska

139

———

Other

440

826

734(5.8%)

Total

11,315

11,91012,712(100.0%)

A carrier Tokyo Gas manages directly

Mexico, MT Falcon
Natural gas power generation(Tokyo Gas interest: 30%)
Capacity 2,233 mw

Mexico, Bajio
Natural gas power generation(Tokyo Gas interest: 49%)
Capacity 601 mw

Brazil, EcogenBrazil, Malhas Project

Energy services project(Tokyo Gas interest: 10%)Natural gas pipeline project(Tokyo Gas interest: 15%)

Tokyo Gas

Annual Report 2013

5

LNG Value Chain

Production andPower Generation

SupplyTokyo Gas provides a stable supply of city gas via apipeline network totaling 60,298 km (consolidated),
centered on the Tokyo metropolitan area. Moving forward,
we will extend our pipelines into regions of demand,promote earthquake preparedness measures, and build
supply networks that are highly resistant to disaster.

With three plants in the Tokyo metropolitan area, our LNG storageand production facilities are some of the largest in the world. We arecontinuing to expand our production system to meet growing
demand for city gas. We also operate highly efficient power generation facilities that employ leading-edge technology and feature
reduced environmental impact. By fiscal 2020, we expect toincrease our generation capacity of the current 2,000 MW tobetween 3,000 MW and 5,000 MW.

Power Generation Business‌TokyoGas Yokosuka PowerCo., Ltd.
240 MW

Tokyo Gas Baypower Co., Ltd.
100 MW x 1 station

100 MW

Ohgishima Power Co., Ltd.
407 MW x 3 stations*

1,221 MWKawasaki‌Natural Gas Power
Generation Co., Ltd.

Capacity
Generationmethod240 MW x 1 station

Combined cycle generation

Combined cycle generation

Combined cycle generation

Combined cycle generation

420 MW x 2 stations

Start ofoperation2006

2003

Rollout of operations sincecommencement in 2010

2008

Tokyo Gasinterest

75%

100%75%49%* ‌Unit 3 is scheduled to start up operations infiscal 2015.

Supply Networks
Sodegaura LNG Terminal
Import volume
FY2012
Storage
capacity
Vaporization
capability

Tokyo Gas supply area

4.942 million
ton/year
1,610,000 kl
1,310 t/h

Ohgishima LNG Terminal
Import volume
FY2012
Storage
capacity
Vaporization
capability

3.991 million
ton/year
600,000 kl
1,115 t/h

Negishi LNG Terminal
Import volume
FY2012
Storage
capacity
Vaporization
capability

3.058 million
ton/year
1,155,000 kl
460 t/hHitachi LNG Terminal
Scheduled to commence
operations in FY2015
Storage
230,000 kl
capacity
Vaporization—
capability
Conceptual drawing ofcompleted terminal	‌Tokyo Gas high-pressure transmission
pipelines	‌Pipelines in which Tokyo Gas has
invested	‌Other companies’ pipelines	‌Tokyo Gas high-pressure transmission
pipelines under construction
Tokyo Gas Group supply area	‌Supply areas of wholesale customers

6Tokyo Gas

Annual Report 2013

840 MW

Gas Sales and Service
In the residential sector, spearheaded by Tokyo Gas LIFEVAL communitybased marketing systems, we are proposing lifestyle values based on gas.
We are also working to promote “ENE-FARM” residential fuel cells and aresupplying electricity. In the commercial and industrial sectors, we
introduce cogeneration and air conditioning systems and promote fuelconversion from other sources. In these ways, we help to provide energy
and contribute to reductions in CO2 emissions.

Gas Sales VolumeLNG tank lorries“Ene-Farm” residential fuel cell

For wholesale use

For residential use

1,953 million m3

3,535 million m3



Hitachi LNG Terminal(Under construction)

13%

23%Total

15,390 million m3
FY2012For industrial use

For commercial use

7,055 million m3

2,847 million m3

Regenerative burner system

Cogeneration system



46%



18%

Ohgishima LNG Terminal

Negishi LNG Terminal

Sodegaura LNG Terminal

Tokyo Gas

Annual Report 20137