Changes in Energy Market andStrategy of Tokyo Gas
December 14, 2016

KOJI YOSHIZAKI
Energy Resources Planning Sect., Gas Resources Dept.
Tokyo Gas Co., Ltd.

Copyright ©2016 Tokyo Gas Co, Ltd. All Rights Reserved.

About Tokyo Gas (as of 3/31/2016)･Established

October 1, 1885

･Number of Customers

11.4 million･Gas Sales Volume

15.4 billion m3･Total Pipeline Length

62,500 km･Net Sales（Consolidated）

JPY1,885 billion（$17.1 billion*）･Net Profit（Consolidated）

JPY112 billion（$1.02 billion*）･LNG Import Volume

13.9 million tons

･LNG Receiving Terminals4 in operation (3,730,000 kL)* JPY110/$Copyright ©2016 Tokyo Gas Co, Ltd. All Rights Reserved.

1

Global LNG supply and demand forecast
Given the wave of new LNG projects from Australia and theUS, over-supply situation will continue well beyond 2020.
Million tons
100万トン
800
800

Projects planned

計画中プロジェクト

700

SPA・HOA締結済プロジェクト
Projects with SPA/HOA

600

既存プロジェクト

700
600

500

Projects in operation

高需要ケース----- High demand case
低需要ケース----- Low demand case

500
400

300
400
200

300

100
200010002010
2010

2015
2015

2020
2020

2025
2025

2030
2030

Source: The Institute of Energy Economic JapanCopyright ©2016 Tokyo Gas Co, Ltd. All Rights Reserved.

LNG contracts and upstream investments of Tokyo Gas
12 Long-term contracts
from 5 countries

Russia 1.7
Qatar 0.4
Australia 5.2

Others 0.3

Existing contract

Brunei 1.0

New contract(unit: Million ton per annum)(Upstream equity share)

FY2015
Approx14.0 mmt

Malaysia 5.3
SakhalinⅡ(1.1)

Indonesia 0.1

MalaysiaⅠ(2.6) / Ⅱ(0.9) / Ⅲ(0.34)
Brunei (1.0)

Qatar (0.35)
Darwin(1.00) （3%）
NWS (0.53) / NWS Expansion (1.07)
Pluto(1.5) （5%）

Cameron (0.7) 2020 ~Cove Point (1.4) 2017 ~Ichthys (1.05) 2017~ （1.575%）
QC (1.2) （1.25%）
Gorgon (1.1) （1%）

Copyright ©2016 Tokyo Gas Co, Ltd. All Rights Reserved.

4

LNG procurement strategy
To achieve stable and affordable LNG procurement, Tokyo Gas willfurther promote three diversifications as well as strengthening andexpanding the cooperation with domestic and foreign LNG players.

Supplysources

for stableprocurement

Contract
Contract
terms
terms andandconditions
forconditi
stable prices
onsfor stable Henry Hub
indexed LNG
prices Destination free
Copyright ©2016 Tokyo Gas Co, Ltd. All Rights Reserved.

 12 projects from 5 countries
 Supply from the United States

LNG
network
for moreflexibility

 Trading opportunity Southeast Asian market

5Expanding LNG Value Chain from Japan toother countries

LNG
production(upstream)

LNG
transportandstorage

LNG power
generation
Liquefaction(LNG fuel)Copyright ©2016 Tokyo Gas Co, Ltd. All Rights Reserved.

Gas
supplyPowersupplyEnergyservices

Endusers

6World-wide businesses and offices

Copyright ©2016 Tokyo Gas Co, Ltd. All Rights Reserved.

7

Strengthening strategic alliances andexpanding offices in Asia
Tokyo Gas
Tokyo Gas Asia Pte. Ltd.

(Singapore, Established in Dec. 2014)

KOGAS (Sep 2014)

Kuala Lumpur Office(Established in 1992)

Jakarta Office(Established in Mar. 2015)

Hanoi Office(Established in Feb. 2015)

CPC Corp. (Aug 2015)

Bangkok Office(Established in Sep. 2015)

Hanoi office

Manila Office
Manila office(planned)

Bangkok office
PetroVietnam Gas(Mar 2012)

Petronas (Oct 2016)

Ho Chi Minh office(planned)
Kuala Lumpur office
Tokyo Gas Asia(Singapore)

Jakarta office

Copyright ©2016 Tokyo Gas Co, Ltd. All Rights Reserved.

(2017～)

Ho Chi Minh Office(2017～)

Pertamina (Feb 2015)8