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

Summary of Remarks by JGA Chair HONJO TakehiroThis year will be the 150th anniversary of the start of gas business inJapan.

It is expected that his year will be a year in which the gas business andgas industry are undergoing major changes, such as further increase in social
demands for carbon neutrality and legal separation of pipeline division of major
gas companies.

In order to make 2022 a year to take a new step toward future
development, we try to embody the Carbon Neutral Challenge 2050 Action Plan,
secure stable supply and safety that will be the basis of the gas business, andregional decarbonizations. We would like to work on supporting activities ofmembers doing business toward regional revitalization.

On the other hand, at present, the number of infected people with newstrain of corona virus is rapidly increasing, and we will strive to continue ourbusiness with a thorough system not stop gas supply, which is essential for
maintaining social functions such as living and industry.

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1. "The 4th Methanation Promotion Public-Private Council" hosted by thegovernment
On January 24, the 4th Methanation Promotion Public-Private Council was
held, in which the Japan Gas Association made a presentation.

As efforts of the gas industry for the implementation of methanations(technology to synthesize methane from hydrogen and captured CO2 ), we areproceeding with technological demonstrations centered on major gas
companies, upsizing of synthesis plants, and searching for suitable sites forbuilding overseas supply chains.

For example, Tokyo Gas will start ademonstration test of methanation in 2021, and Osaka Gas plans to conduct ademonstration test on a scale of 400 Nm3 / h in collaboration with INPEXCorporation.

On the other hand, under the current domestic system and internationalrules, the position of the CO2 reduction effect by methanation is not clear, so it
is necessary to evaluate its value in related systems.

We also acknowledgedthat it is important to proceed with concrete studies as soon as possible,
considering the lead time required for the construction of the methanation plant.
We would like to continue working in collaboration with the Task Force to solve
problems.

On the other hand, under the current domestic system and internationalrules, the position of CO2 reduction by methanation is not clear, so it isnecessary to evaluate its value in systems.

2In addition, considering the leadtime required for the construction of the methanation plant, we have shown that
it is important to proceed concrete studies as soon as possible.

We would

like to continue working in collaboration with the Task Force to solve issues.
In addition, METI suggested the creation of an action plan to achieve thetarget of 1% introduction of synthetic methane in 2030.
At the same time, in addition to the establishment of a task force related toCO2 counting, it was also proposed to establish a task force to promote thestudy for the realization of domestic and overseas methanation businesses forthe purpose of embodying the Action Plan.

Since the Methanation Promotion Public-Private Council will sort out theissues to be considered at the end of the fiscal year (31 March, 2022), we would
like to continue to participate as the Japan Gas Association and makecooperation and recommendations.

2. Regional Revitalization Forum
Decarbonization and population decline in the region have become major
issues.

Among them, it is important for gas companies to contribute to solving

problems in the region, which is the basis of gas business.
To that end, we will hold a regional revitalization forum this year as well,with keynote speeches and advancement of gas companies that will contributeto regional decarbonization and regional revitalization efforts, mainly targetingthe management of local gas companies. Advanced case studies of gas
companies will also be introduced as well.

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