The Japan Gas Association
1-15-12 Toranomon Minato-ku, Tokyo105-0001, JAPANDecember 15, 2022

Summary of Remarks by JGA Chair HONJO Takehiro

1. Looking back on 2022
In 2022, Russian invasion of Ukraine raised concerns about LNG
procurement on a global scale, and energy prices rose sharply, bringing
back awareness of the importance of a stable energy supply.
Despite those rapidly changing conditions, the Japanese city gas
industry worked together with the public and private sectors to ensure astable supply and to strengthen systems and mechanisms to prepare forany contingency.
On the other hand, for decarbonization, the Japanese city gas industries
steadily promoted various activities, including the social implementation of“e-methane”, based on the Japan Gas Association’s "Carbon Neutral
Challenge 2050" action plan.
In general, 2022 was a year in which we responded to major changes
and worked toward the mid- to long-term challenge for carbon neutral ofgas.

2. New comprehensive economic measures of the government (e.g.,measures to reduce gas price)"New Comprehensive Economic Measures", announced by thegovernment, which included support measures to cope with the higher citygas rates and support measures for the introduction of ENE-FARM（Residential fuel cell） in the residential sector.
With regard to support for city gas rates, all JGA’s charter member
utilities have applied, and preparations are underway to implement theprogram, including making it easier for customers to understand.
Support for the introduction of ENE-FARM is another support measurethat contributes to the promotion of energy conservation, and the industry
will actively utilize this measure.

3. Status of city gas supply and demand measures
The city gas industry, which there have been no disruptions to the stablesupply of LNG to date thanks to various measures and innovations,
including accelerated procurement of LNG and stockpiling of inventory.
Amid such circumstances, the public and private sectors have beenworking together to prepare for any possible tight supply and demand.
The city gas industry has revised its " Guidelines for Response to LargeScale LNG Supply Disruptions" to ensure smooth interconnections amonggas utilities in the event of such an emergency, and is also studying
mechanisms for providing information to consumers and other parties, aswell as demand control measures using the gas version of economic
demand response.
In the Japanese government, the Gas Industry Law has been amended
to allow the government to be involved in LNG procurement andrestrictions on gas use in the event of a contingency, such as an LNG
supply disruption.
We will continue to take all possible precautions to ensure that stablesupply will not be disrupted this winter.

4. Methanation Promotion Public-Private Council meeting
The 9th Council Meeting was held on November 22, and it was reported
on studies and demonstrations for the introduction of e-methane in Japanand overseas. The report estimates the cost of supplying hydrogen carriers
derived from renewable energy sources and indicated that e-methane is
an important option as one of the hydrogen carriers.
The Council members commented that "Methanation" is under concreteconsideration for social implementation and requested for measures tosupport its introduction on the same level as hydrogen and ammonia, as
well as the positioning of e-methane in the GX（Green transformation）
Executive Committee of the government.
The Japan Gas Association proposed unifying the designation ofsynthetic methane to "e-methane" and got the consensus from thecommittee members. We will work to raise awareness of e-methane fromnow on, including overseas.