Annual Report for Fiscal 2018
(April 1, 2018 - March 31, 2019)

The High Pressure Gas Safety Institute of Japan (KHK)1. Business Environment and Overview of Operations
Japan’s economy was on a moderate recovery trend through 2018 as the employment and income situations
continued to improve, although some weakness still remained. Meanwhile, to foresee the future of overseas
economies, various factors need to be considered such as Northeast Asian security situation, influences oftrade conflicts on the global economy, China’s economic outlook, and the uncertainty accompanying
Brexit. Due attention should also be paid to the impact of these factors on Japan’s economy.
Moreover, just as last year, huge natural disasters including torrential rain in western Japan and the
Hokkaido Eastern Iburi earthquake have occurred, requiring continuous response.
In the field of high pressure gas safety, KHK assiduously carried out and stabilized the “fast track system”
and “new system for accredited places of business”, whose full-scale supplication was started as a part ofthe smartification of high pressure gas safety promoted by the Ministry of Economy, Trade and Industry. In
relation to the former system, the assessment results were publicized on our website in FY2018 as the firstexample of taking advantage of the system. In relation to the latter system, the Ministry of Economy, Trade,and Industry authorized its third specific accreditation places of business in December 2018, and its firstself-safety enhancement places of business in September 2018, based on preliminary investigations by
KHK.
In addition, on March 4, 2019, we concluded the “Agreement of Cooperation regarding High Pressure Gas
Safety” with the Yokohama City Fire Bureau. This is the first agreement between KHK and a local
governmental authority which conducts high pressure gas safety administration.
KHK strengthened governance such as compliance and information security measures in view of its highly
public responsibility. The Research and Development Center equipped with the latest test equipment wascompleted in July 2017, and continued the implementation of research and development meeting thedemands of the present age also in FY2018. Furthermore, in FY2018, KHK strongly promoted structuralreform efforts for which the plan was set out as early as 2017 considering KHK’s future business
management.
Looking at KHK’s business in fiscal 2018, we were able to secure a reasonable balance of payments due toproactive and detailed sales development for ISO clients, solid incomes from inspections in our inspection
business, and the increase of METI-contracted businesses to the Research and Development Center, as wellas efforts of structural reform such as reviews of payment structure.
2. Overview of Financial Statements for Fiscal 2018
(1) Balance Sheet(As of March31, 2019)
AssetsCurrent assets
Fixed assets

2018

2017

Million Yen

Million Yen

1,812

1,627

(2) Statement of Profit and Loss(from April 1,2018 to March 31,2019)
Expenditure
Ordinary expenditure

2017

Million Yen

Million Yen

4,739

4,655

5,968

6,062

4,739

4,655

Tangible fixed assets

1,104

1,162

Extraordinary loss

2060

79

Intangible fixed assets

94

123

Corporate taxes, etc.

693

676

Investments
Total

Operating expenditure

2018

4,768

4,770

Profit for the term

7,780

7,688

Total
Income2018

2017

Million Yen

Million Yen

Current liabilities

804

853

Fixed liabilities

2,168

1,957

Operating income

Reserve

4,878

4,581

Non-operating income

Liabilities/Capital

Profit for the term
Total
1

-70

298

7,780

7,688

Ordinary income

Extraordinary income
Total

-70

298

4,671

5,032

2018

2017

Million Yen

Million Yen

4,671
4,576
94
390
4,671

4,746
4,624
122
286
5,032

Copyright © The High Pressure Gas Safety Institute of Japan3. Overview of Each Activity
3-1. Development and Issue of Technical Standards
To promote safety in activities involving high pressure gas production, sale, consumption, andtransportation, KHK establishes technical standards such as KHK Standards (KHKS) as well as
reviews existing standards.
Committee organizations undertaking the preparation of technical standards are as follows:

Each committee consists of committee members appointed from among experts who have relevant
knowledge and experience in high pressure gas or LPG safety.
In response to requests from the chairman of KHK, the technical committee decides basic policies forestablishing the technical standards.
The technical standards are then established by each standards committee section in accordance withthe basic policies, and the development and issue procedures maintain fairness and openness as thefundamental rule.
During fiscal 2018, the following standards were established, reviewed or abolished.
(a) Newly Established Technical Standards
 Standard for Composite Fiber Reinforced Plastic Pressure Vessel for Compressed Hydrogen(KHKS 0225)
 Standard for In-service Inspection (for Compressed Hydrogen Stand) (KHK/JPEC S 0850-9)
 Standard for Seismic Design of High Pressure Gas Equipment (Level 1) (KHKS 0861)
 Standard for Seismic Design of High Pressure Gas Equipment (Level 2) (KHKS 0862)
 Standard for Supercritical Fluid Extraction / Supercritical Fluid Chromatography System(KHK/JAIMAS 0901)(b) Revised Technical Standards
 Standard for Safety Valve of Acetylene Container (KHKS 0125)
 Standard for Design and Manufacturing of LPG Container Valve (KHKS 0126)
 Standard for Facility of Refrigeration and Air-conditioning Equipment [Fluorocarbon and carbon
dioxide Facility Part] (KHKS0302-1)
 Standard for Facility of Refrigeration and Air-conditioning Equipment [Fluorocarbon (Limited toInert Gas and Less Than 20 Ton in Refrigeration Capacity) Facility Part] (KHKS 0302-2)
2

Copyright © The High Pressure Gas Safety Institute of Japan










Standard for Earthquake-Proof Automatic Gas Shut-Off Device for LPG (KHKS 0714)
Standard for Metal Flexible Hose (Including Fittings) (KHKS 0715)
Standard for Hose Bands (KHKS 0716)
Standard for Installation of Gas Leakage Alarm for LPG (KHKS 0718)
Standard for Gas Discharge Prevention Device for LPG (KHKS 0719)
Standard for Safety Adapter for LPG (KHKS 0722)
Standard for Gas Leakage Alarm and Shut-Off Device for LPG (KHKS 0723)
Standard for Automatic Gas Shut-Off Device (Type II) Based on Microcomputer-based Flow
Rate Detection for LPG (KHKS 0726)
Standard for Flexible Tube (Including Flexible Tube Fitting) for LPG Piping (KHKS 0727)
Standard for Automatic Gas Shut-Off Device (Type L) based on Microcomputer-based Flow Rate
Detection for LPG (KHKS 0728)
Standard for Root Valve with Checking Valve for LPG (KHKS 0731)
Standard for Checking Valve Adapter for LPG (KHKS 0732)
Standard for Flow Rate-Based Switchable Leakage Detection Device for LPG (KHKS 0734)
Standard for Installation and Handling Procedure of LPG Facilities (KHKS 0738)
Standard for Work for Filling Bulk Storage Tank with LPG (KHKS 0744)
Standard for In-service Inspection (for Underground Rock Cavern of LPG storage)(KHK/JOGMEC S 0850-8)Standard for Seismic Design of High Pressure Gas Equipment (Level 1) (KHKS 0861)
Standard for Seismic Design of High Pressure Gas Equipment (Level 2) (KHKS 0862)
Periodical Self-inspection Guidelines (for Underground Rock Cavern of LPG storage(KHK/JOGMEC S 1850-8)
Technical Document on Underground Rock Cavern of LPG storage (KHK/JOGMEC TD 5800)














(c) Abolished Technical Standards
 Standard for Installation of Earthquake-Proof Automatic Gas Shut-Off Device for LPG (KHKS0720)
 Technical Document on Composite Fiber Reinforced Plastic Pressure Vessel for Compressed
Hydrogen (KHKTD 5202)
3-2. Inspection, Examination and Accreditation(a) Inspections for Pressure Equipment
The High Pressure Gas Safety Act stipulates that the person who has manufactured/ imported acontainer or accessory shall apply for the Container/Accessory Inspection. We at KHK conduct these
inspections.
In addition, for preventing explosions or other accidents, the act defines "equipment for high pressure
gas production (including storage tanks) "which particularly requires "inspections of its design,material quality, and the process of its manufacturing", as "Designated Equipment." KHK undertakes
mandatory inspections of such Designated Equipment at each manufacturing process.
KHK undertakes technical assessments in advance to obtain Ministerial special approval, and alsooffers services for certification and examination as a part of its optional activities.
In fiscal 2018, the number of application for inspection of containers decreased by 2.3% and that ofaccessory equipment decreased by 4.9% compared to the previous fiscal year respectively. And thenumber of application for inspection of designated equipment increased by 14.8% compared to theprevious fiscal year.

3

Copyright © The High Pressure Gas Safety Institute of Japan

Number ofContainer

containers/K
2,500

2,111 2,162 2,149
1,892

2,000

Number ofAccessory
2,217

accessories/K
24,0002,082 2,035

1,807

20,0001,604 1,595
1,500

16,0001,000

12,000
11,20511,16511,555

500

9,742 9,917

10,89310,65110,735
10,263 9,760

0

8,000
4,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Fiscal Year

Number of Container/Accessory inspections

Number ofequipment
20,00017,47618,00016,00014,00012,00013,844

13,74910,951

11,644

14,90914,311

15,22013,72012,161

10,000
8,000
6,000
4,000
2,000
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Fiscal Year

Number of Designated Equipment Inspections(b) Pre-Assessment of Accredited Completion/ Safety Inspection Executor
This pre-assessment undertaken by KHK is part of the statutory service related to the Ministerial
approval of accredited completion inspection executor and safety inspection executor.
Class 1 high pressure gas producers who obtained Ministerial approval as a result of thispre-assessment can replace completion inspections or safety inspections that are conducted by
4

Copyright © The High Pressure Gas Safety Institute of Japanprefectural or municipal governments with self–inspections by the approved producers themselves.
When the self-inspections are conducted, the results shall be submitted to jurisdictional prefectural or
municipal governments.
Number of pre-assessments
2018
2017
Accredited completion inspection executor

15

18

Accredited safety inspection executor

1619(c) Safety Inspections of Refrigeration and Air-Conditioning Facilities
The number of inspections of refrigeration and air-conditioning facilities undertaken by KHK
2018
2017
Completion inspection of refrigeration and air-conditioning facilities

36

42

1,803

1,741

Approval of specified equipment (refrigeration equipment)

188

156

Transfer of specified equipment (refrigeration equipment)

2

6

Testing of refrigeration apparatus

307

104

Design strength verification test, etc.

150

113

Safety inspection of refrigeration and air-conditioning facilities

3-3. Education(a) Statutory Training
By the High Pressure Gas Safety Act, high pressure gas producers are required to establish a safety
management team consisting of members with a designated high pressure gas production safety
management certificate, depending on the type and scale of processing equipment and the type andvolume of gas produced. To train certified personnel, KHK offers lectures on each certificate type, andretraining for existing members of safety management teams.
In addition, KHK also provides training courses for the following certificates: high pressure gas sales
safety chiefs required at specified high pressure gas dealers, transportation supervisors required fortransportation of specified amount of specified high pressure gas, and specific high pressure gas
operation safety chiefs required for storage and consumption of specified high pressure gas beyond thedesignated capacity.
As for the LPG Law-related activities, KHK offers the following courses: training and retraining of
LPG installation engineers for LPG piping facilities used for general consumption, retraining of retail
operation chiefs, training and retraining of LPG filling operators, as well as training of safety
operators and inspectors of facilities designed to consume LPG.
Number of applicants for statutory training
2018

5

2017

Qualification Training

44,61645,694Re-training (Compulsory training)

46,54445,643

Statutory training

91,16091,337

Copyright © The High Pressure Gas Safety Institute of Japan

Among the statutory training, while there was a decrease in the number of the qualification training
from 45,694 in fiscal 2018 to 44,616, that of the re-training (compulsory training) increased from45,643 to 46,544 in fiscal 2018. The total number of applicants of the statutory training decreased
from 91,337to 91,160.
(b) Other Training
During fiscal 2018, KHK held various seminars related to high pressure gas as below; on-site lectures
corresponding to the needs of each business facility, safety seminars (such as basic lectures on highpressure gas and seminars on relevant law and regulations), seminars for high pressure gas safety
executors (such as safety inspection seminars), and various seminars corresponding to the local needs.
(c) Publications
KHK publishes books related to high pressure gas safety such as high pressure gas safety act,
technical standards, and textbooks for training. During fiscal 2018, KHK published 143 types ofbooks, accounting for a total of 172,527.
3-4. National Qualification Examination
The High Pressure Gas Safety Act and LPG Law stipulates that the Minister of Economy, Trade andIndustry or prefectural governors must be responsible for conducting the high pressure gas production
safety management examination, the high pressure gas sales safety chief examination, and the LPG
installation engineer examination, depending on the classification of examinations.
However, the actual implementation of such examinations was transferred to KHK from the Ministerof Economy, Trade and Industry and prefectural governors. The total number of applicants for suchexaminations in fiscal 2018 was 53,419, which was a decrease of 3.6% compared to 55,401 from theprevious fiscal year.
Number ofapplicants
70,00065,00060,00062,332

57,46757,378 57,170

59,59558,231 58,365

55,40154,28155,00053,41950,000
2009

2010

2011

2012

2013 2014
Fiscal Year

2015

2016

2017

2018

Number of applicants for National qualification examinations
3-5. Research and Development
The Research and Development Center at KHK owns testing machines such as tensile/fatigue tests ofmaterials, as well as hydraulic fatigue/explosion tests of pressure equipment including transportablecontainers, undertaking research and development to enhance high pressure gas safety. In addition,
6

Copyright © The High Pressure Gas Safety Institute of Japan

KHK are working on researches commissioned by the government and incorporated administrative
agencies.
In fiscal 2018, KHK conducted four studies commissioned by the Ministry of Economy, Trade andIndustry as well as by the New Energy and Industrial Technology Development Organization (NEDO).
The following is the overview of the research commissioned by NEDO.
(a) Technology Research and Development Project to Promote the Full-Scale Prevalence of Ultra High
Pressure Hydrogen Infrastructure /Technological Development Related to Domestic Regulatory
Optimization /Research and Development on the Introduction of New Criteria for Evaluatory
Hydrogen Characteristics
Since general-purpose steel — the most common material in hydrogen stations across the city — isexpected to be used, the following study was conducted for the purpose of introducing new evaluation
standards for hydrogen characteristics; (1) Research and Development on Expansion of Usable Rangeof Stainless Steel, (2) Research and Development on Cold-Worked Material Stainless Steel, (3)Research and Development on Welding Materials for Stainless Steel, and (4) Research andDevelopment on High Temperature Applications of Low Alloy Steel.
(b) Full-scale diffusion technology research and development project for Ultra-high pressure hydrogen
infrastructure /Technological development related to cost reduction of hydrogen stations etc.
/Development of evaluation method for composite pressure vessels, and technical development for the
preparation of technical standards
The following two studies were conducted with the aim of simplifying the methods of evaluating
composite pressure vessels, in order to reduce the cost of composite pressure vessels installed at thehydrogen stations, as well as to develop the technology to extend their service life; (1) Technologicaldevelopment for the establishment of composite pressure vessel design methods based on stressanalysis and fatigue analysis, and (2) Technological development for the preparation of technicalstandards for composite pressure vessels.
3-6. Measures to Promote LPG Consumer Safety(a) Liquefied Petroleum Gas Safety Commission
The commission operates with contributions from 17 LPG-related organizations and KHK. In
partnership with the Gas Safety Office at METI Commerce, Distribution and Industrial Safety PolicyGroup, the commission performed the following safety campaigns during fiscal 2018.
 LPG Consumer Safety Campaign
Prepared and distributed LPG safety guides and posters, and advertised in magazines, while provided
assistance to safety activities undertaken by prefectural LPG associations.
 LPG Consumer Safety Promotion Conference
At the event, the commission offered commendations for LPG retailers and related operators
including individuals with the ‘METI Minister's Secretariat, Director-General for Commerce,
Distribution and Industrial Safety Policy Award,’ ‘KHK Chairman’s Award,' and 'Liquefied Petroleum
Gas Safety Commission President's Award,’ respectively.
(b) Examination
During fiscal 2018, the following examination activities were undertaken.
Examination activities
2018
LPG leak alarm examination and gas leak senor
2,716,640
LPG incomplete combustion alarm examination
26,320LPG sensor examination
1,890

7

2017
2,711,220
22,7001,911

Copyright © The High Pressure Gas Safety Institute of Japan

3-7. Collection and Offering of Information, Technical Exchanges(a) Collection of Accident Information
Acting on a commission by METI, KHK compiles a database of high pressure gas and LPG-related
accidents and conduct a statistical analysis. See reference at the end of this brochure.
(b) Organization of Various Conferences and Conventions
The notable conferences and conventions KHK organized during fiscal 2018 include the following: Grand Conference of National Association of General High Pressure Gas Safety Organizations (Tokyo,
August 2018)
The conference was organized for the purpose of fostering cooperation and discussions among generalhigh pressure gas safety organizations established in prefectures. KHK acted as the administrative
department for the conference.
 Seminar on Lessons from Accidents and Safety Management Technology Part of Safety Management Technology (Tokyo, July 2018 and Osaka, September 2018)
This seminar is for the accredited completion and safety inspection executors and the personnelof three management divisions (equipment, operation, and safety), including those atheadquarters management level, of high pressure gas producers at industrial complexes, and it isorganized to provide a place of information provision, information exchange, and discussions
related to high pressure gas producing equipment, their operations, and safety management
activities.
 Part of Lessons from Accidents and Safety Measures (Tokyo, August 2018 and Osaka, September
2018)
The high pressure gas producers that actually caused accidents explained their experience andpost-accident efforts on safety measures so that seminar participants could make use of theinformation that would be helpful for their future voluntary safety activities, including lessons
from accidents and preventive measures.
 National Conference of High Pressure Gas Safety (Tokyo, October 2018)
The conference, which takes place every October, is organized as a part of the annual high pressure
gas safety promotion week, hosted by METI in conjunction with KHK. Each year, top-rated plants ofsafety, persons who have rendered distinguished safety service and excellent production safety
managers are awarded in honor of their continuing hard work, support, and resulting outcomes inpreventing high pressure gas-related accidents.
 High Pressure Gas Equipment Manager Meeting (Tokyo, October 2018)
The meeting is organized annually for the purpose of informing high pressure gas equipment
personnel (applicants for Designated Equipment Inspection) of question and answers about material,
design, welding, and structure-related issues in order to achieve consistent applications across varying
issues.
 General Research Presentation (Tokyo, December 2018)
The presentation is hosted annually to disseminate information on the findings from the investigative
research undertaken by the Research and Development Center at KHK.
(c) International Technical Exchange
KHK sends a delegate to the boiler and pressure vessel standards committee and the post-construction
standards committee of the American Society of Mechanical Engineers (ASME), and also has
established good relations with Korea Gas Safety Corporation and Industrial Safety and Health
Association of the R.O.C.

8

Copyright © The High Pressure Gas Safety Institute of Japan

3-8. Assessment and Registration System(a) Assessment and Registration of Quality Management System
Since being accredited by the Japan Accreditation Board (JAB) as a quality management system
certification body in 1994, the KHK ISO Registration Center (KH-ISO Center) evaluates quality
management system for operators in accordance with the ISO 9000 series standards, and manages
registration and publication of registered organizations. On June 2000, the Center started evaluating andmanaging registration and publication of registered organizations of the medical device quality
management systems, which requires highly technical knowledge among quality management system
based on ISO13485. As of the end of fiscal 2018, it performs registration in 30 out of the 39
JAB-accredited classes (classes 1-39). As of the end of fiscal 2018, the number of registrations stands at
774.
(b) Assessment and Registration of Environmental Management Systems
For assessment and registration of environmental management systems (ISO14001), the Center became
a JAB- accredited certification body in 1996. As of the end of fiscal 2018, it operates registration
screenings in 34 out of the 39 JAB-accredited classes (classes 1-39). As of the end of fiscal 2018, thenumber of registrations stands at 448.
(c) Assessment and Registration of Occupational Health and Safety Management Systems.
On March 2000, the Center began evaluating and managing registration and publication of registers fororganizations of occupational health and safety management systems based on OSHA180001. In July
2018, the Center initiated management based on newly established ISO 45001. As of the end of fiscal
2018, the number of registrations stands at 24.
(d) Assessment and Registration of Food Safety Management Systems
Taking advantage of the framework of quality management, environmental management, andoccupational and health management systems, in 2011 the Center started managing registration andpublication of registers of organizations based on ISO22000 series as a JAB-accredited body. As of theend of fiscal 2018, the number of registrations based on ISO 22000 stands at six and that based on
FSSC22000 series stands at seven.

Change in the total number of registrations

9

Copyright © The High Pressure Gas Safety Institute of Japan4. Organization
4-1. Organization Chart

4-2. Membership Status
Types
Companies
Organizations
Individuals
Supporters

10

March 31, 2019
868
192
85
32

March 31, 2018
868
192
96
33

Copyright © The High Pressure Gas Safety Institute of JapanReference: Overview of Accidents in Recent Years
Under the commission of METI, KHK records statistics of high pressure gas- and LPG-related accidents,
based on the number of reports submitted in accordance with the regulatory requirements of the High
Pressure Gas Safety Act (hereinafter referred to as “HPG Act”) and the Securing of Safety and the
Optimization of Transaction of Liquefied Petroleum Gas (hereinafter referred to as “LPG Act”).
Figure 1 shows the number of the HPG Act accidents that occurred between 2009 and 2019 classified as
human damages. Note that among the HPG accidents, the figure excludes those involving general
consumers, which pertains to LPG Act.

Figure 1: Change in number of HPG Act accidents classified as human damages

11

Copyright © The High Pressure Gas Safety Institute of Japan

Figure 2 shows the LPG Act accidents that occurred between 2009 and 2018 classified as human damages.
The total number of the LPG Act accidents classified as human damages is gradually decreasing. In 2018,
no accident resulting death has occurred.

Figure 1: Change in number of the LPG Act accidents classified as human damages

12

Copyright © The High Pressure Gas Safety Institute of Japan

Contact for inquiries related to this document

The High Pressure Gas Safety Institute of Japan (KHK)
Information & International Affairs Department
International Affairs Division
4-3-13 Toranomon, Minato-ku, Tokyo 105-8447
TEL: +81-3-3436-2201 FAX: +81-3-3438-4163
Web: http://www.khk.or.jp/english/index.html
MAIL: oversea@khk.or.jp

Copyright © The High Pressure Gas Safety Institute of Japan