The Japan Gas Association
1-15-12 Toranomon Minato-ku, Tokyo105-0001, JAPAN

December 14, 2021

Summary of Remarks by JGA Chair HONJO Takehiro

1. Looking back on 2021
It was a memorable year in 2021 as the restrictions on economic and social
activities continued due to the COVID-19, and the Tokyo Olympics andParalympics were held under these circumstances.
In addition, Tokyo Gas won the long-awaited first victory at the "Intercity
Baseball Tournament 2021", where five gas companies participated for the firsttime.
In the energy industry, there were movements such as the tight supply anddemand of electricity at the beginning of the year, soaring natural gas prices
mainly in Europe in the fall, and global crude oil prices toward the end of theyear.
In addition to the recovery of demand due to the resumption of economic
activity, the sharp shift to decarbonization, such as the stagnation of investment
in fossil fuels and the decline in the operation of renewable energy, is considered
to be one of the reasons behind this. We are currently at a major turning pointin energy policy, but it was a year when we strongly felt the importance of S(Safety) + 3Es (Energy Security, Economic Efficiency, and Environment),
including supply stability and economic efficiency.

As an energy supply industry, we would like to continue working to realize
1decarbonization without neglecting stable supply and ensuring security.
Regarding the gas industry, the realization of a carbon-neutral society has
become a social issue, and in June, the "Carbon Neutral Challenge 2050 Action
Plan" was formulated and announced.
At the same time, it was a year in which the "JGA's Carbon NeutralCommittee" was established to establish the foundation for steadily
implementing carbon neutralization of the gas business.
In addition, by actively responding to policy discussions such as participationin the government's "Study Committee on the Ideal Gas Business for 2050",
countries such as the "6th Strategic Energy Plan" and "Green Growth Strategy"
In the energy and environmental policy of Japan, we were able to incorporate
the importance of city gas for the future, such as the shift of natural gas and theutilization of synthetic methane.
On the other hand, although earthquakes with a seismic intensity of 5 or
higher occurred frequently this year, we believe that we were able todemonstrate high resilience without causing major damage such as disruptionsof gas supply.
Furthermore, it was a year of strengthening support for gas companies amid
major issues such as decarbonization and population decline.
2022 marks the 150th anniversary of the start of the gas business. With thetrend of decarbonization, the gas industry is at a crossroads of newtransformation, but we would like to make it a year of start that will lead to future
leap toward the conversion and further development to the next-generation
thermal energy industry.

2(1) Policy trends toward carbon neutrality in 2050 and efforts by the gasindustry
Regarding the status of efforts by the gas industry in the "Carbon Neutral
Challenge 2050 Action Plan", in Action 1, "Contribution to Achieve NDC in 2030",
conversion to natural gas and introduction of carbon neutral LNG areprogressing. In Action 2, "Challenge to Implement Methanation(SynthesizingMethane)," the demonstration project for practical use and domestic andoverseas supply chain construction, and in Action 3, "Challenge to Direct
Hydrogen Supply," the efforts for technological development are stated. We
accept that efforts are being made steadily toward the realization of carbon
neutrality of gas.

(2) Response to frequent earthquakes
An earthquake with a seismic intensity of over 5 occurred off the coast of
Fukushima Prefecture in February and in Tokyo in October, but no major
damage such as supply suspension occurred. It can be said that this is the resultof the replacement of polyethylene pipes and other earthquake-resistant gaspipes.
The earthquake resistance rate of low-pressure gas pipelines was 90.3% atthe end of 2019, achieving the national target of 90% at the end of 2025 aheadof schedule, and aiming for the target of 95% in 2030 for stable supply. We will
promote such efforts.

(3) Efforts for regional revitalization
Regarding regional decarbonization, we are proceeding with briefing
sessions and exchanges of opinions in order to promote the activities of gas

3companies, which are expected to play a leading role. We will continue tosupport our efforts by sharing advanced cases and providing tools.
In addition, we started the "Regional New Value Creation Project" to support
the creation of new services and products that will lead to regional revitalization
and resolution of regional issues. A lecture was given by inviting an outside
lecturer, and 20 officers from gas companies nationwide participated. We plan
to continue to provide individual support to businesses that want to deepen theirstudies. We hope that along with the creation of new businesses, we will be able
to share examples of initiatives within the gas industry.

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