The Japan Gas Association“Towards a ‘Green Future’ with Natural Gas in Asia”

Tsuyoshi OkamotoChairman
The Japan Gas AssociationBeijing
September 22, 2016
© 2015 The Japan Gas Association

The Japan Gas AssociationContents
1. Japan’s Environment/Energy Policy
2. Efforts for Environmental Preservation
by Japan’s City Gas Industry
3. Potential for Contribution to Asia2
© 2015 The Japan Gas Association

1. Japan’s Environment/Energy Policy

The Japan Gas Association

Outline and Significance of the Paris Agreement
The Paris Agreement, which was adopted at COP 21 in December 2015, was ahistoric turning point in the following context.
• It was the first fair agreement participated by all countries.
• Quantitative restriction target (2°C target) on temperature rise was set.

Source: The Government of France

3© 2015 The Japan Gas Association

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1. Japan’s Environment/Energy Policy

Japan’s GHG Emission Reduction Target
Japan’s GHG emission reduction target is -26% in FY2030 compared to FY2013.

 Japan’s Major Efforts towards Reduction of GHG•••••

Promoting introduction of facilities/equipment with high energy-saving performance
Enhancing energy-saving of buildings (housing)
Expanding area-wide energy useIntroducing to the best degree, renewable energies
Conducting thorough energy management using HEMS, smart meters, etc.

 Plans Promised by Major Countries
Comparison with1990

Comparison with2005

Comparison with2013

To be reduced byJapan-18.0%-25.4%-26.0%

2030

U.S.

-14% Ð 16%-26% Ð 28%-18% Ð 21%

2025

EU-40%-35%-24%2030

Source: Energy White Paper*Underlines indicate
the country’sbase4© 2015The JapanGasyearAssociation

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1. Japan’s Environment/Energy Policy

Japan’s Energy Policy
According to the Long-Term Energy Supply and Demand Outlook provided by theJapanese government, energy demand can be reduced by 13% in 2030 compared
to 2013 by taking thorough energy conservation measures in all industries.
Energy Demand

361 million kl

Electricity
25%

Final energy consumption
AroundEconomic growth326
million kl
1.7%/year

10%

13%

Around22 Ð 24%

Renewableenergies

Around22 Ð 20%

LNG

24%
Thorough energy
conservation
Around50.3 million kl

Heat supply,
petrol,city gas,etc.
75%Electric Power Source Composition

Around28%

46%

Nuclear

Coal
Petroleum

26%
Around27%

Around72%

Fiscal 2013

Fiscal 2030

actualafter implementing energy
conservation measures

Source: The Long-Term Energy Supply and Demand Outlook

27%

30%

13%

11%

Around3%

Fiscal 2010

Fiscal 2014

Fiscal 2030

Around26%

outlook

Source: Energy White Paper

5© 2015 The Japan Gas Association

2. Efforts for Environmental Preservation by Japan’s City Gas Industry The Japan Gas Association

Efforts for the Entire LNG Value ChainJapan’s city gas operators have expanded the business domain in the LNG value
chain and have promoted reduction of CO2 emissions by widely spreading use ofnatural gas utilizing energy conservation technologies.
Efforts in the LNG Value Chain[Sales]Advanced energy conservationengineering technologies
Importing gas

Sending gas

Producing gas

Medium-pressure pipeline
High-pressure
Low-pressure
pipeline
pipeline
Gas fields

Liquefyingplant

LNG tanker

LNG tank(production plant)

Gas holder

Vaporizer

Governor

Governor[Development][Imports]

Investment in upstream
business

Introduction of highly efficient
LNG tankers

Supplying gas
to customers

Households, hospitals,
schools, stores,
factories, offices(CO2 underground reservoir, etc.)

Source: Tokyo Gas Co., Ltd., Osaka Gas Co., Ltd.

6© 2015 The Japan Gas Association2. Efforts for Environmental Preservation by Japan’s City Gas Industry The Japan Gas Association

Japan’s city gas operators are contributing to the reduction of CO2 from consumer
energy consumption by expanding use of highly efficient equipment and shifting
fuel to natural gas.
Widespread Use of Highly Efficient Equipment
Commercial & industrial use cogeneration

Fuel Shift to Natural Gas for Industrial-use
Thermal Demand: CO2 emissions

Fuel oil A+
Conventional burner100

Switch to natural gas
Latent-heat-recovery-typewater heater

Residential fuel cells

75

Natural gas+
Conventional burner
Introduction of highly efficientequipment

45*
Natural gas+
Highly efficient burner
Source: Osaka Gas Co., Ltd.

7© 2015 The burner
Japan GasAssociation*Regenerativein use

2. Efforts for Environmental Preservation by Japan’s City Gas Industry The Japan Gas AssociationConstructing a smart energy network focusing on natural gas and distributed
energy systems toward a low carbon society.
 Smart Energy Network Concept
Case of Tamachi, Tokyo
Building B (Office building)Solar heat

Solar heat/Sunlight
Minato Park Shibaura

Hotel building

Information
Building A (Office)

CGS

Collaboration between centers

CGSElectricity
Heat

Minato Ward Shibaura
Nursery, etc.
No.2
smart energy
center
Source: Tokyo Gas Co., Ltd.

Aiiku Hospital

No.1
smart energy
centerUndergroundtunnel water8© 2015 The Japan Gas Association

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3. Potential for Contribution to Asia

Contribution to Asia
Japan’s city gas operators will contribute to realizing a ‘green future’ in Asia byutilizing their comprehensive know-how encompassing businesses from upstream
to downstream.
Upstream business

Midstream business

Downstream business

Development of gas fields

Expansion of LNG receivingterminals
Pipeline transportation

Power generation business
Energy services
Gas retail

Source: Tokyo Gas Co., Ltd., Osaka Gas Co., Ltd.

9© 2015 The Japan Gas Association

The Japan Gas Association

Thank you for your attention.

10© 2015 The Japan Gas Association