The Japan Gas Association
1-15-12 Toranomon Minato-ku, Tokyo105-0001, JAPANApril 24, 2024

Summary of Remarks by JGA Chair UCHIDA Takashi
1. Introduction
First, I would like to express my thoughts on assuming this position.
The environment surrounding the city gas industry has changed
dramatically over the past several years. These include the accelerating
global trend toward carbon neutrality, the tightening of global LNG supply
and demand following Russia-Ukraine conflict and the resulting surge inenergy prices, and, on the demand side, the growing awareness of energy
conservation and the need to strengthen disaster countermeasures in lightof the frequent earthquakes, windstorms, and floods that have occurred inmany regions.
Particularly, the trend toward carbon neutrality will significantly change
the future of the city gas business.
The city gas industry is in the process of undergoing a majortransformation, the first phase being the foundation of the gas business,the second phase being the introduction of LNG, and the current phasebeing the “third founding”.
The entire gas industry will work in unison to realize the challenges ofstable energy supply and a carbon-neutral society, and in particular, will
steadily implement the social implementation of e-methane, while firmly
strengthening support for local gas companies.
I would like to keep in mind what we must do to ensure that the city gas
industry continues to be chosen by customers and society.

2. Japan Gas Association Business Plan for FY2024
FY2024 will be an important year for paving the way for the social
implementation of e-methane, as the next Strategic Energy Plan isformulated and detailed studies on the feasibility of e-methane productionin Japan and abroad are underway. Therefore, we will aim to establish theposition of e-methane in national policies and systems, as well as in society.
In addition, with the changing global situation and concerns about energy
supply, including LNG, we will respond to the demands for a stable supply
from the government and society, and support the business activities of
local city gas utilities that are facing a declining population.
The first concrete initiative is to strengthen efforts to realize the "Carbon
Neutral Challenge 2050 Action Plan". In addition to ensuring the positionof e-methane in the Strategic Energy Plan and other policies, we will
strengthen support and institutional measures for social implementation ofe-methane, such as the Japan Climate Transition Bonds and investment
recovery schemes. At the same time, efforts will be strengthened topromote the introduction of gas systems that contribute to the promotionof fuel switching during the transition period and the strengthening ofresilience. Energy policy is based on "S + 3E," and while aiming for carbon
neutrality, it is important to ensure low carbon, stable supply, and economic
efficiency in the transition period. We hope that the government will also
clearly indicate the importance of natural gas in the transition period in thenext Strategic Energy Plan.
The second point is the constant efforts to ensure a safe and stablesupply of city gas.
We will promote thorough preparation from both supply and demandsides for LNG supply disruptions in the event of a contingency, ensure safe

and stable supply, promote the introduction of smart security, andstrengthen its disaster response capabilities.
The third point is to strengthen support for local decarbonization andregional revitalization efforts.
We will promote the expansion of gas systems in the region, support for
carbon neutrality that can be implemented in the region, horizontal
development of good examples of regional revitalization efforts, andsupport for regional collaboration measures.
In addition to these three points, in FY2024, we will make thoroughpreparations for the pavilion's participation in the Expo 2025 Osaka,
Kansai, Japan, including building momentum, steady construction work,and detailed studies of operation and exhibition staging.

3. Trends of e-methane
The Japan-U.S. Clean Energy and Energy Security Initiative Plenary
Meeting was held in March by the Ministry of Economy, Trade and Industry
and United States Department of Energy.
Following the agreement reached at that meeting, the outcome
document of Prime Minister Kishida's official visit to the U.S. on April 10
clearly stated that he welcomed the progress of the CCUS and carbon
recycling projects underway between Japanese and U.S. companies.
It also clearly stated that Japanese companies have signed a basic
agreement with U.S. companies on e-methane to avoid double-counting ofcarbon dioxide emissions.
It is hoped that the private-sector agreement will lead to the organizationof counting rules among nations in the future.

4. Gas Pavilion in the Expo 2025 Osaka, Kansai, Japan
Regarding the Gas Pavilion in the Expo 2025 Osaka, Kansai, Japan,
preparations for the GAS PAVILION OBAKE WONDERLAND including
planning and construction work, are generally progressing smoothly in
preparation for the opening of the Expo in about a year, and work willcontinue to proceed safely.
A new “OBAKE” (friendly shapeshifter) character was recently unveiled
and will be named by votes from all over Japan, with the aim of creating apavilion that will be familiar to all visitors.