OTHER BUSINESSBusiness overview
We have identified seven business domains that comprises the formation of our Group: City gas business, Electric powerbusiness, Liquid gas business, Living service, Engineering service, Urban development service, and Overseas business.
This section contains profiles of the Engineering service, the Urban development service, and the Liquid gas business, three ofthe domains.

Engineering Service Business

Providing customer-oriented engineering solutions and expanding areas andbusiness domains
In April 2015 Tokyo Gas Engineering Solutions Corporation(TGES) was established by integrating capabilities inengineering and energy solutions, which used to beseparately available within the Group. TGES is providing
one-stop solutions that better satisfy the needs of ourcustomers in Japan and abroad in a wide range of domains,
stemming from receipt of transported or conveyed resources
and production of gas to gas supply, power generation, andenergy solutions in the LNG value chain.
In April 2017, we opened new offices in Nagano and Fukuoka.
We will partner with the energy suppliers of each region andprovide engineering solutions to customers. In addition toexpanding business in the Japanese market, we intend to
expand business overseas.
By bundling various engineering solutions available atTGES, we are emphasizing our ability to provide one-stop,diversified solutions.

GMEA*
Supplying electricity andsteam to Toray Group Malaysia

Current model

Bundled service model

Providing case-by-caseengineering solutions

Engineering solutions are bundled
to provide optimal services
LNG facilities

LNG facilities

Energy service

Pipelines

District heating
and cooling
service Smart
EnergyEnergy use
facilities

Mapping, Soiletc.

Pipelines

Energy service

Energy use
facilities

District heatingand cooling service
Smart Energy

Mapping, Soiletc.

Moreover, Investment

LNG

Diagram of Engineering Solution SupplyPlants

Gas network
Heat network
Electricity network
Utility network
ICT network

Middle-pressure
pipeline
High-pressure
pipeline

LNG
receivingterminal

Energy (utility)
service center
Middle-pressure
pipeline

Smart Energycenter

Valve station
Governor station

Medical facilities

Nagano Office
Kyushu Office (in Fukuoka)

31

TGES America
Supplying steam, etc. to Toray
Carbon Fiber America* GAS MALAYSIA ENERGY ADVANCE Sdn. Bhd. (Gas Malaysia Co.:66%, TGES:34%)

Hotels andcommercial facilities

Offices andhousing
complexes

JapanArea-wide use of distributed energy to significantly
conserve energy and reduce CO2 emissions
The cogeneration system (CGS) recovers and uses otherwise
wasted thermal energy to generate electricity for heating.
Higher CGS capacity results in higher efficiency.
One office can install only a small CGS for an optimal balanceof electricity and heat. However, by combining multiple
customers with various needs, a larger CGS can be installed
and realize a higher-level of energy saving than a single-type
CGS can achieve.
As an example, Nissan Motor’s Yokohama Plant wanted to
cut back grid power usage during peak hours by using
in-house power generation and to secure power sources incase of emergency. We therefore installed a large gas
cogeneration system and supplied electric power to the plant.
Then in 2016 we began to supply steam generated by the gas
cogeneration system to J-Oil Mills’ Yokohama Plant, which islocated across the street from Nissan’s plant and had a highthermal energy demand. As a result, approximately 3%energy saving and 6% reduction in CO2 emissions wereachieved in aggregate.
At the Kiyohara Industrial Park in Utsunomiya City, we areconstructing a Smart Energy center to provide energy
services to three companies and seven offices in the park.
This will be Japan’s first “integrated energy-saving businessserving multiple plants” to supply electricity and heat to
multiple businesses of different sectors in an inland-typeindustrial park. Due to adoption of a large-scale CGS and an
energy management system, approximately 20% in energy
saving and reduction in CO2 emissions are projected.
Without being hindered by the conventional methods, we arethus providing valuable services and contributing to energy
saving and reduction in CO2 emissions.

Overseas

Energy service business
TGES’ overseas subsidiary will provide energy services tothe Toray Group’s plants in Malaysia and the U.S.A. Theenergy services comprise construction of an energy plantthat has gas cogeneration systems, boilers, and equipment
such as for air-conditioning and water treatment, and efficient
supply of a wide range of services involving generated
electricity, steam, water, and other resources.
Based on its proven achievement, TGES’ plant design andmaintenance will enable to realize energy savings from its
optimal systems and long-running cost reductions. In return,
TGES will receive energy service fees, based on its long-term
customer contract.

TOKYO GAS ANNUAL REPORT 2017

Unique engineering solutions, leveraging accumulated know-how

Engineering business
TGES was awarded an order for assignment as a project
management contractor (PMC) of the capacity expansion
construction project of PPT LNG Map Ta Phut Receiving
Terminals, Thailand. This is the first PMC order of its kindreceived by a Japanese company outside Japan. This is also
the first LNG terminal in Thailand in anticipation of substantial
growth in energy demand in keeping with the nation’s
economic development.
The Tokyo Gas Group intends to further promote overseas
business development, leveraging by its frontrunnerexperience and strengths in construction, operation,maintenance, and management of LNG terminals.

32

Business overview

Chiyoda-ku
Shimbashi
StationShibuya-ku

Tokyo Station
Chuo-ku

Tamachi
Setagaya-ku

Koto-kuToyosuMinatoku

Meguroku

Shinagawa
StationShinagawa-ku

Ota-kuUrban Development Service (Real Estate) Business

Generating stable earnings by effective use of high-potential sites owned by Tokyo Gas
The Tokyo Gas Group owns high-potential, large-scale
properties in locations such as Tamachi and Toyosu in Tokyo.
We are developing those properties, while limiting associatedrisks, in order to improve asset value by their effective use.
In April 2017, we established Tokyo Gas Real Estate Holdings
Co., Ltd. as a general management company. As the Group’s
Tamachi

Large-scale development with directconnections to JR Tamachi Station

urban development service business, we aim for expanding
profits to contribute to community-based energy proposals
and community development through effective use andmanagement of properties and cooperation with strong
players in the real estate industry.

ToyosuTamachi Station and its surrounding area are expected toplay the role of a gateway to Tokyo, as it is close to the Linear
Chuo Shinkansen Line route and has easy access to Haneda
Airport which has a plan for further development. Office andhotel buildings and commercial facilities are underconstruction on this 2.8ha site, and will be directly connected
to Tamachi Station.
October 2015

Started construction of the Tamachi Station Tower S, the Hotel Tower,
and the Smart Energy Center

Summer 2017

Started construction of the Tamachi Station Tower NApril2018

Complete construction of the Smart Energy Center (plan)

May2018

Complete construction of the Tamachi Station Tower S and the HotelTower (plan)

Fall2018

Start hotel operation (plan)

Spring2020

Complete construction of the Tamachi Station Tower N (plan)

Complex town planning project in the intended
locations of the Tokyo 2020 Olympics

The redevelopment area in Toyosu is a prime location, about
4km away from Tokyo Station. The Tokyo Bay area, including
Toyosu, is getting increased attention as it will be a major
location of the Tokyo 2020 Olympics and Paralympics events.
The Tokyo Gas Group is involved in construction of a
combination of residential, office, and commercial facilities inthis widespread development area of approximately 20ha.

Intended location of the Tokyo 2020
Olympics and Paralympics Athletes’ Village

Toyosu-ohashi Bridge

JR Tamachi Station(Yamanote Line)

Harumi-ohashiBridge

Tokyo Gas Group site
Toyosu Market

HotelStores

PedestriandeckTamachi
StationTower STamachi
StationTower NSocialServicesFacilityRedevelopment area33msb Tamachi

Minato Park Shibaura

Urban Planning
ParkAiiku
Hospital

Shijoumae
StationToyosu
MarketToyosu MarketFujimi Bridge

Ariake NorthBridge

Shintoyosu
StationToyosu Smart Energy Center

Ariake Tennis noMori Station
Intended location of the Tokyo 2020
Olympics and Paralympics Stadium

Kiyari Bridge

ToyosuStationYurikamome

OTHER BUSINESSTOKYO GAS ANNUAL REPORT 2017

Liquid Gas Business
In April 2016 we established Tokyo Gas Liquid Holdings Co.,
Ltd. to integrate and enhance strategy planning and promotionof the liquid gas business, to sell LPG and manufacture andsell industrial gas, using LNG cold energy, and the cold storage
warehouse business.
In the LPG sales business, we aim to grow it as one of profit
pillars of the Tokyo Gas Group, by strengthening sales
capacity, mergers and acquisitions, and through alliances.
Specifically, as a new measure to help construct a highlyefficient logistics network and improve maintenance levels andcustomer services, we are seeking alliances with LPG players
who have different strengths. Our target is to have one million
or more customers by 2020, including 300,000 direct sales
customers from the Tokyo Gas Group.
As for industrial gas, we make effective use of LNG coldenergy, and manufacture and sell high-grade affordable
industrial gas. We also plan to enhance sales capability byoffering one-stop solutions to large-account customers by
combining LNG, engineering, and other services of Tokyo Gas.

Alliances

Structure of Tokyo Gas Liquid Holdings

October 2016

February 2017Concluded the Basic Agreement for aComprehensive Alliance with Astomos Energy

Concluded the Basic Agreement for aComprehensive Alliance with Saisan

Tokyo Gas Liquid Holdings
Tokyo Gas Energy

Tokyo Gas Chemical

Japan Super Freeze

Sales of LPGManufacturing andsales of industrial gas,using LNG cold energy

Cold storage
warehousing, using
LNG cold energy

LPG Business: Target in Number of Customers(thousand)

1,200

1,000 Distributors andfriendly LPG
operators

800

Direct sales

400

300

Direct sales

60

240 Distributors

0March 2017342020A cold storage warehouse of Japan Super Freeze