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

Summary of Remarks by JGA Chair HONJO Takehiro

1. Support for stable energy supply
In Prime Minister Kishida's press conference on July 14, PM Kishidastated that stable power supply is expected to be secured this summer.
However, in response to the government's request for nationwide power
conservation to deal with the recent severe power supply and demand
outlook, the Japan Gas Association is calling for cooperation from city gas
utilities nationwide in conserving electricity. The gas industry will alsocontribute to reducing the burden of electricity supply and demand throughinitiatives such as in-house power generation using gas cogeneration, gas
air conditioning, and smart energy networks that use digital technology tocontrol these systems.
Regarding gas supply, the national commission of inquiry has begun
discussions on emergency demand measures. Unlike the request for
power conservation in response to the severe electricity supply anddemand outlook, there are no current obstacles to the stable supply of gas,
but the international LNG procurement environment is becoming
increasingly severe, and studies are being conducted to prepare for theeventuality of obstacles to procurement through long-term contracts andother means.
A presidential decree on the transfer of interests in Sakhalin II to a newcompany of Russian nationality has recently been issued.

On July 14,

Prime Minister Kishida commented that "Sakhalin II is an important project
for the stable supply of electricity and gas" and that "imports will not stop
immediately." The gas industry will continue to monitor the situation closelyand work to ensure a stable supply.

2. Smart security initiatives
Gas utilities have traditionally worked to maintain and improve safety at
every stage of production, supply, and consumption, such as by promoting
the use of gas appliances with high safety standards and establishing 24hours a day,365 day a year system. In this context, they have been working
to improve the level of safety and resilience to natural disasters using
digital technology to speed up and improve the accuracy of operations.
Furthermore, these technologies are horizontally deployed throughdissemination seminars and other means to promote the advancement ofsecurity in the industry as a whole. As for future efforts, the gas industry
will promote smart security based on the "Action Plan for Smart Security in
the Gas Sector" formulated by the government in March 2021. Throughthese efforts, the company will further maintain and improve safety andstable supply, which are the cornerstones of the city gas business, as wellas promote resilience enhancement and productivity improvement. We
would like the Japanese government to consider institutional measures toencourage the promotion of such smart security.

3. Publication of 『METHANATION: e-methane, Ace for carbon
neutralization of city gas』The book is being published to raise awareness of methanation as ameans of decarbonizing city gas. With contributions from Dr. Keigo

Akimoto who is Chief Researcher at RITE, and Professor Takeo Kikkawa
who is Vice President at International University of Japan, as well as theThe Institute of Applied Energy and other related organizations andcompanies, the report provides a wide range of information on methanation,
including an overview of decarbonization technologies, domestic andinternational initiatives, and institutional issues. We hope to use this bookto further improve the social recognition of methanation.