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

July 10, 2023

Summary of Remarks by JGA Chair HONJO Takehiro
1. Introduction
Regarding the explosion that occurred in Shimbashi, Tokyo on July 3, wehear that the detailed cause of that is still under investigation at this time,
but we extend our deepest sympathies to those affected by the incident.
2. Trends toward the promotion of carbon neutrality of city gas
The significance and effectiveness of the movement to promote theintroductionofcarbon-recycled

fuels,

includinge-methane,

wasdemonstrated at the G7 Hiroshima Summit in May and at the " Basic Policy
on Economic and Fiscal Management and Reform 2023" approved by theCabinet last month. We would like to express our gratitude to all those
involved for their efforts in reviewing and compiling the report.

As for domestic trends, Gas Business System Study Working Group ofa METI Council summarized the interim summary of issues and indicatedthe direction to be focused on in the future. The significance of promoting
e-methane and biomethane for the carbon neutralization of city gas waspresented, and the following points were raised: additional costs can becontrolled, the contribution to energy self-sufficiency and energy security
can be improved, and the contribution to the enhancement of industrial
competitiveness can be made.

In addition, Methanation Promotion Public-Private Council of a METI
Council reported on the status of the study of domestic systems for emethane use, and presented the direction of future study based on theproposal to set the CO2 emission count at zero on the e-methane user'sside.
We look forward to the early progress of specific studies on future issuesfor the system and measures to promote its introduction.

As for trends of overseas, the International Energy Agency (IEA)
released its "Gas Market Report" in May, which presented its views on emethane.
It was indicated that Japan is ahead of the rest of the world in advancing
concrete studies for the introduction of e-methane, including technology
development, value chain development, and institutional studies, and thate-methane can be an effective means to realize a carbon-neutral society.

In addition, the Japan Gas Association and the French Gas Association（Francegaz） discussed cooperation in transitions toward gas carbon
neutrality between the two associations and agreed to cooperate in thedevelopment of CO2 counting rules and the exchange of information onenergy transition technologies in the future.
We are very encouraged by the growing opportunities to collaborate withrelated organizations not only in Japan but also in other countries.

3. Efforts to strengthen stable supply and resilience
The year 2023 will mark the hundredth year of the Great Kanto
Earthquake, and the city gas industry's disaster preparedness efforts haveevolved significantly.

Japan, where is prone to natural disasters, we are strengthening ourcountermeasures on three levels. In other words, we will continue to strive
to supply city gas that is strong and resilient in the event of a disaster bystrengthening facility measures to ensure adequate preparation inadvance, emergency measures to ensure a quick response in the event of
a disaster, and recovery measures including the development of a support
system after a disaster.