Annual Report for Fiscal 2016
(April 1, 2016 - March 31, 2017)

The High Pressure Gas Safety Institute of Japan (KHK)1. Business Environment and Overview of Operations
The gradual recovery of the Japanese economy continued in fiscal 2016, against a backdrop of ongoing
improvements in the employment and income environments. On the other hand, various factors need to betaken into account when considering the outlook for the overseas economy, such as heightened uncertainty
accompanying US policy trends and Brexit, and its future remains impossible to predict. Moreover, major
damage due to natural disasters occurred in this fiscal year. In addition to the damage arising from the
Kumamoto earthquakes and from earthquakes with their epicenters in central Tottori prefecture and off thecoast of Fukushima prefecture, torrential rain caused by typhoons brought widespread damage to Hokkaido
and to Iwate prefecture.
Turning our attention to the field of high pressure gas safety, from the standpoint of responsibility forpractical business in this area, we collaborated with the Ministry of Economy, Trade and Industry in orderto respond to the move to make high pressure gas safety smarter which is under consideration by thenational government. As part of our response, we carried out system design for the practical businessaspects of the “fast track system” and launched full-scale operations in December 2016, as well as holding
briefings on this system in February 2017. We carried out a detailed study in preparation for theestablishment of the “System for newly-accredited places of business” which is scheduled for introduction
from fiscal 2017. Furthermore, as progress is made in the provision of hydrogen stations for the purpose ofrealizing a hydrogen society, the large-scale refurbishment of our Research and Development Center, built
more than 40 years ago, is proceeding smoothly, enabling us to carry out the latest safety research torespond to the needs of each era.
Looking at the business environment of KHK in fiscal 2016 in this context, there were various factors
leading to a reduction in income: in addition to a cyclic decline in the number of students on
legally-required courses this year, the number of technical reviews carried out as part of our equipment
inspection business fell. Despite this, each department worked hard to cut spending, for example byembarking upon continual reviews of expenditure. As a result, we were able to secure a reasonable balanceof payments.
2. Overview of Financial Statements for Fiscal 2016
(1) Balance Sheet(As of March31, 2017)
2016

2015

MillionYen
Current assets

1,481

1,639

Fixed assets

Assets(2) Statement of Profit and Loss(from April 1,2016 to March 31,2017)
2016

2015

MillionMillionMillion

Yen

Yen

Yen

4,457

4,576

Expenditure

Ordinary expenditure

6,050

6,275

4,457

4,576

Tangible fixed assets

967

640

Extraordinary loss

084

Intangible fixed assets

117

171

Corporate taxes, etc.

643

0Investments

Operating Expenditure

4,965

5,465

Profit for the term

358

24

Total

7,532

7,914

Total

4,815

4,909

Liabilities/Capital

2016

2015

Income2016

2015

Million Yen

Million Yen

Million Yen

Million Yen

Current liabilities

858

1,138

Fixed liabilities

2,092

2,553

Operating income

Reserve

4,222

4,223

Non-operating income

Profit for the term
Total

1

358

248

7,532

7,914

Ordinary income

Extraordinary income
Total

4,379

4,582

4,269

4,466

110

116

436

327

4,815

4,909

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:
Fitness for Service Standards Committee

LPG Standards Committee

Technical Committee
The High Pressure Gas
Safety Institute of Japan

Refrigeration and Air-Conditioning
Standards Committee

High Pressure Gas Standards Committee

Transportable Container Standards
Committee

Pressure Vessel Standards Committee

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 president 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 2016, the following standards were revised or abolished.
(a)Newly Established Technical Standards
 Standard for Gas Leakage Alarm for LPG (KHKS 0747)
 Standard for Incomplete Combustion Alarm for LPG (KHKS 0748)
 Standard for Gas Detector for LPG (KHKS 0749)
 Standard for Gas Leakage Detector for Bulk Storage (KHKS 0750)(b)Revised Technical Standards
 Standard for Ultra High Pressure Gas Equipment (KHKS 0220)
 Standard for Non-cylindrical Pressure Vessel (KHKS 0221)
 Guideline for Design of Threaded Components (KHKS 1222)
 Standard for Periodical Inspection of Seamless Containers for Air Breathing Apparatus(KHKS 0151)
 Standard for Periodical Inspection of Seamless Aluminum Alloy Containers for General Use(KHKS 0152)
 Standard for Low Pressure Indoor Rubber Tubes for LPG (KHKS 0708)
 Standard for Low Pressure Hoses with Joints and Connectors for LPG (KHKS 0709)
 Standard for Pressure Chart Recorders for LPG (KHKS0713)
 Standard for Houses with Combustor Connectors for LPG (KHKS 0721)
 Standard for Automatic Gas Shutdown Device with Microcomputer-based LPG Flow Detector

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Copyright © The High Pressure Gas Safety Institute of Japan(Type-S) (KHKS 0733)
 Standard for Automatic Gas Shutoff Devices (Diaphragm Meters) based on
Microcomputer-based Flow Rate Detection for LPG (KHKS0737)
 Standard for Automatic Gas Shutdown Device with Microcomputer-based LPG Flow Detector(Type-E and EB) (KHKS 0741)
 Standard for Automatic Gas Shutdown Device with Microcomputer-based LPG Flow Detector(Type-S 4) (KHKS 0742)
 Standard for Automatic Gas Shutoff Devices (Ultrasonic Meters) based on Microcomputer-based
Flow Rate Detection for LPG (KHKS0743)
 Standard for High Pressure Gas Pipe (KHKS 0801)
 Voluntary Inspection Guideline (Related to Natural Gas Stand) (KHKS 0850-5)
 Guideline of Hazard Prevention Rule for Class 1 Producer and Specific Plant (KHKS 1800-1)
 Guideline of Hazard Prevention Rule for Class 1 Producer and General Plant (KHKS 1800-2)
 Guideline of Safety Training Program for Class 1 Producer and Specific Plant (KHKS 1801-1)
 Guideline of Safety Training Program for Class 1 Producer and General Plant (KHKS 1801-2)
 Safety Education Guideline for Class 2 Producer, Owner, or Possessor of a Class 1 Storage Placeor Class 2 Storage Place, Dealer, or Specific High Pressure Gas Consumer (KHKS 1801-3)
 Guideline of Disaster Prevention Rule of Nankai Trough Earthquake for Class 1 Producer andSpecific Plant (KHKS 1803-1)
 Guideline of Disaster Prevention Rule of Nankai Trough Earthquake for Class 1 Producer andGeneral Plant (KHKS 1803-2)
 Regular Voluntary Inspection Guideline (related to Natural Gas Stand) (KHKS 1850-5)(c)Abolished Technical Standards
 Standard for Quick Coupling for LPG Transportation Vehicles (KHKS 0705)
 Standard for Overcharge-proof Device for LPG Transportation Vehicles (KHKS 0706)
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 2016, the number of application for inspection of containers increased by 3.2% and that ofaccessory equipment increased by 0.8% compared to the previous fiscal year respectively. And thenumber of application for inspection of designated equipment decreased by 4.0% compared to theprevious fiscal year.

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Copyright © The High Pressure Gas Safety Institute of Japan

Number ofcontainers/K
2,500

Container

24,000

2,251
2,111
1,907

2,000

Number ofaccessories/K

Accessory

1,892
1,604

2,162

2,149

2,217
20,000

1,807

1,595

1,500

16,0001,000

12,000
11,205 11,165 11,555

500

9,003

8,811

2007

2008

9,742

9,917

2012

2013

10,893 10,651 10,735
8,000

4,000

0
2009

2010

2011

2014

2015

2016

Fiscal Year

Number of Container/Accessory inspections

Number ofequipment
25,00020,01720,00018,486

14,90913,84415,00013,74910,951

11,644

14,311

13,72012,161

10,000

5,000

0
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

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.

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Copyright © The High Pressure Gas Safety Institute of Japan

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
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
2016

2015

Accredited completion inspection executor

20

20

Accredited safety inspection executor

2026(c) Safety Inspections of Refrigeration and Air-Conditioning Facilities
The number of inspections of refrigeration and air-conditioning facilities undertaken by KHK
2016
2015
Completion inspection of refrigeration and air-conditioning facilities

80

80

1,804

1,991

Approval of specified equipment (refrigeration equipment)

160

181

Transfer of specified equipment (refrigeration equipment)

6

5

Testing of refrigeration apparatus

158

190

Design strength verification test, etc.

155

186

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
2016
2015

5

Qualification Training

44,46445,284Re-training (Compulsory training)

32,41632,001

Statutory training

76,88077,285

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 45,284 in fiscal 2015 to 44,464, that of the re-training (compulsory training) increased from
32,001 to 32,416 in fiscal 2016. The total number of applicants of the statutory training decreased
from 77,285 to 76,880.
(b) Other Trainings
During fiscal 2016, KHK held periodical seminars including basic lectures on high pressure gas safety(16 types at 50 locations), and organized 39 on-site lectures on voluntary safety activities dependingon the needs of each business facility.
(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 2016, KHK published 136 types ofbooks, accounting for a total of 149,652.
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 2016 was 59,595, which was a decrease of 4.4% compared to 62,332 from theprevious fiscal year.
Number ofapplicants
70,00065,00062,33259,59560,00054,73255,00057,46757,378 57,170

58,231 58,365

54,281

53,12550,00045,000
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Fiscal Year

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,
KHK are working on researches commissioned by the government and incorporated administrative
agencies.

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Copyright © The High Pressure Gas Safety Institute of JapanIn fiscal 2016, KHK conducted four researches 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.
“Investigation and Research on Fuel Cell Vehicles and the Optimization of Domestic Regulations andInternational Harmonization and Standardization of Hydrogen Supply Infrastructure”(a) Research and Development on the Diversification of the Types of Metal Materials for Hydrogen
Fueling Stations
In preparation for the advent of the hydrogen society, it is intended to build up an environment, which
will allow the selection of reasonable, easy and convenient materials at temperatures and pressuresdesired for the construction of a hydrogen station, and gain experience by practice. It is also aimed to
study and determine the criteria to evaluate availability of materials in hydrogen stations, including test
types, conditions, evaluation methods and the like, and standardize these techniques and widen therange of usable materials.
(b) Research and Development on the Standardization of Composite Cylinders and Tubes for Stationary
Storage
In the testing of composite cylinders and tubes which are used in hydrogen stations, there is a big gap
between an ambient temperature pressure cycling test, one of the evaluation methods, and actual use
conditions. A further sophistication of the evaluation methods, including the fatigue design ofcomposite cylinders and tubes, is desired. Under the circumstances, it is aimed to improve andsophisticate (1) the evaluation techniques of Composite Cylinders and Tubes for Stationary Storage,(2) the evaluation techniques of CFRP, (3) the fatigue design methods of Composite Cylinders andTubes for Stationary Storage and (4) the safety inspection techniques of composite cylinders and tubes,
in order to contribute to the research and development for the standardization of composite cylinders
and tubes for hydrogen stations.
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 2016.
 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 President's Award,' and 'Liquefied Petroleum
Gas Safety Commission President's Award,’ respectively.
(b) Examination
During fiscal 2016, the following examination activities were undertaken.
Examination activities
2016
2015
LPG leak alarm examination and gas leak senor
2,763618
2,745,026
LPG incomplete combustion alarm examination
28,03926,183
LPG sensor examination
1,930
2,510

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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 2016 include the following: Grand Conference of National Association of General High Pressure Gas Safety Organizations (Tokyo,
July 2016)
The conference was organized for the purpose of fostering cooperation and discussions among
general high pressure gas safety organizations established in prefectures. KHK acted as theadministrative department for the conference.
 Seminar on Lessons from Accidents and Safety Management Technology (Tokyo and Osaka, August2016) Part of Safety Management Technology
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
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 2016)
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 2016)
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, November 2016)
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 thepost-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.

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Copyright © The High Pressure Gas Safety Institute of Japan

3-8. Assessment and Registration System(a) Assessment and Registration of Quality Management Systems
Since being accredited by the Japan Accreditation Board (JAB) as a quality management system
certification body in 1994, KHK ISO Registration Center (KHK-ISO Center) handles registration ofquality management systems for operators in accordance with the ISO9000 series standards, andmanages registration and publication of registered organizations. As of the end of fiscal 2016, it
operates registration in 30 out of 39 class JAB accredited (class 1-39). As of the end of fiscal 2016, thenumber of registrations stands at 884.
(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, and as of the end of fiscal 2016, it operates
registration screenings in 34 out of 39 JAB-accredited classes (class 1-39). As of the end of fiscal
2016, the number of registrations stands at 544.
Number ofregistrations
1,800
1,734

1,718

1,700

1,664
1,604

1,600

1,600

1,597

1,554

1,535

1,500

1,484

1,484

2015

2016

1,400
2007

2008

2009

2010

2011

2012

2013

2014

Fiscal Year

Change in the total number of registrations (Quality and Environment)(c) Other Assessment and Registration
As of the end of fiscal 2016, the total number of occupational health and safety management system(OHSMS) registrations was 23. The total number of food safety management system (ISO22000)
registrations was five, and the total number of FSSC22000 series was six.

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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, 2017
871
192
92
32

March 31, 2016
887
192
95
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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 2007 and 2016 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

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Figure 2 shows the LPG Act accidents that occurred between 2007 and 2016 classified as human damages.
The total number of the LPG Act accidents classified as human damages is gradually decreasing. In 2016,no accident resulting death has occurred.

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

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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