Annual Report for Fiscal 2020
(April 1, 2020 - March 31, 2021)

The High Pressure Gas Safety Institute of Japan (KHK)1. Business Environment and Overview of Operations

Though Japan's economy continues to be wary of Covid-19 infections, it is expected to improve at amoderate pace, as the impacts of the infectious disease gradually ease. It is necessary to pay close attention
to the risk that the Covid-19 infections will further lower the domestic and foreign economies and to theimpact of fluctuations in the financial and capital markets. In addition, Covid-19 infections have spread inJapan and overseas this year, intensifying natural disasters such as heavy rains on July 2nd and typhoon No.
10 have occurred, and continued response to these events has been required.
Turning to the field of high pressure gas safety, as a part of the smart high pressure gas safety policy
promoted by the Ministry of Economy, Trade and Industry, AI reliability evaluation guidelines in the fieldof plant safety (November 2020) were established. The Ministry also clarified that technologies such as
drones, robots, sensing, and AI can be used for inspection (February 2021) etc.
In addition, in view of the high public responsibility of KHK, we strengthened governance such ascompliance and information security. In consideration of the future management situation, KHK prepared
for the internal reorganization scheduled from April 2022, and for the improvement of the information
system in line with the reorganization. Consideration was given to adopting cloud services with a secured
security level while improving business efficiency.
Regarding the business of the fiscal year 2020 of KHK, the spread of the Covid-19 infection in Japan andoverseas had a great impact on the operation. In particular, due to a significant decrease in the number ofparticipants of legal training, examinees of national examinations, and inspections for overseas bulk, etc.,
sales decreased significantly as a whole. On the other hand, expenditures for securing venues and measures
to prevent infection increased. Under these circumstances, efforts were made to significantly reduce
expenditures in order to reduce the impact on the KHK's balance of payments. In addition, instead offace-to-face and collective work, we used online technology as much as possible to ensure that the work
was carried out without causing stagnation.
2. Overview of Financial Statements for Fiscal 2020
(1) Balance Sheet(As of March31, 2021)
Assets2020

2019

Million Yen

Million Yen

Current assets

2,666

1,974

Fixed assets(2) Statement of Profit and Loss(from April 1,2020 to March 31,2021)
Expenditure
Ordinary expenditure

2020

2019

Million Yen

Million Yen

4,233

4,442

5,156

6,009

4,233

4,442

Tangible fixed assets

983

1,035

Extraordinary loss

05Intangible fixed assets

205

205

Corporate taxes, etc.

1

1

3,968

4,767

Profit for the term

7,823

7,983

Total
IncomeInvestments
Total

Operating expenditure

2020

2019

Million Yen

Million Yen

Current liabilities

612

830

Fixed liabilities

2,268

2,181

Operating income

Reserve

4,971

4,807

Non-operating income

Liabilities/Capital

Profit for the term
Total
1

-28

163

7,823

7,983

Ordinary income

Extraordinary income
Total

-28

163

4,206

4,612

2020

2019

Million Yen

Million Yen

4,024
3,931
93
182
4,206

4,594
4,504
90
17
4,612

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 2020, the following standards were established, reviewed or abolished.
(a) Newly Established Technical Standards
 Facility Standard for Refrigerating and Air-Conditioning Equipment [Facilities of specified inertgas] (KHKS 0302-5)(b) Confirmed Technical Standards
 Registration Criteria for Manufacturers of containers, etc. (KHKS 0102)(c) Revised Technical Standards
 Technical Standard for Aluminum Alloy Liner / Carbon Fiber General Composite Container(KHKS 0121)
 Standard for Ultra-high Pressure Gas Equipment (KHKS 0220)
 Facility Standard for Refrigerating and Air-conditioning Equipment [Facilities of flammable gas]
(KHKS 0302-3)
 Standard for Rubber Cap as Indoor Gas Plug for LPG (KHKS0712)
 Standard for Regulators for LPG (KHKS0735)
 Standard for High Pressure Hoses for LPG (KHKS0736)
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Copyright © The High Pressure Gas Safety Institute of JapanStandard for Security inspection (related to Refrigeration Safety Ordinance) (KHKS 0850-4)
Guidelines for Hazard Prevention Regulations (for specific business establishments) (KHKS
1800-1)
Guidelines for Hazard Prevention Regulations (for general business establishments) (KHKS
1800-2)
Guidelines for Periodic Self-inspection (related to Refrigeration Safety Ordinance) (KHKS
1850-4)
Guidelines for Hazard Prevention Regulations (For freezing-related business establishments)(KHKS 1301)

(d) Abolished Technical Standards
 Technical Documents related to the Application of Standards for Ultra-high Pressure Gas
Equipment to High-pressure Hydrogen Equipment (KHKTD 5201)
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 2020, the number of application for inspection of containers decreased by 0.9% and that ofaccessory equipment decreased by 4.3% compared to the previous fiscal year respectively. And thenumber of application for inspection of Designated Equipment decreased by 3.7% compared to theprevious fiscal year.
Number ofcontainers/K

Container

2,500

2,000

2,217
2,111 2,162 2,149

1,892

Accessory

2,082 2,035

Number ofaccessories/K
2,262 2,241

24,00020,000

1,807

1,500

16,0001,000

12,00011,555500

9,742 9,917

10,89310,651
10,73510,263

9,760 10,058 9,624

0

8,000

4,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fiscal Year

Number of Container/Accessory inspections
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Copyright © The High Pressure Gas Safety Institute of Japan

Number of
equipment
25,00019,18720,00015,00017,476
13,74914,90914,311

18,473

15,22013,72011,644 12,161

10,0005,000

02011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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
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
2020
2019
Accredited completion inspection executor

21

14

Accredited safety inspection executor

2115(c) Safety Inspections of Refrigeration and Air-Conditioning Facilities
The number of inspections of refrigeration and air-conditioning facilities undertaken by KHK
2020
2019
Completion inspection of refrigeration and air-conditioning facilities
Safety inspection of refrigeration and air-conditioning facilities
Approval of specified equipment (refrigeration equipment)

4

39

34

1,497

1,592

99

130

Copyright © The High Pressure Gas Safety Institute of Japan

Transfer of specified equipment (refrigeration equipment)

7

1

Testing of refrigeration apparatus

164

382

Design strength verification test, etc.

195

239

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
2020

2019

Qualification Training

30,242

38,790Re-training (Compulsory training)

30,69743,341

Statutory training

62,61685,020(b) Other Training
During fiscal 2020, 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 2020, KHK published 143 types ofbooks, accounting for a total of 128,377.
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 Minister
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Copyright © The High Pressure Gas Safety Institute of Japan

of Economy, Trade and Industry and prefectural governors. The total number of applicants for suchexaminations in fiscal 2020 was 42,804, which was a decrease of 18.0% compared to 52,204 from theprevious fiscal year.
Number ofapplicants
65,00062,33260,00055,00057,46759,59558,231 58,365

55,40154,28153,41952,20450,00045,00042,80440,000

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

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.
In fiscal 2020, KHK conducted seven 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
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Copyright © The High Pressure Gas Safety Institute of Japan

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 2020.
 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 2020, the following examination activities were undertaken.
Examination activities
2020
LPG leak alarm examination and gas leak sensor
2,659,937
LPG incomplete combustion alarm examination
24,540LPG sensor examination
1,780

2019
2,683,431
25,7002,080

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 2020 include the following: Grand Conference of National Association of General High Pressure Gas Safety Organizations(Tokyo, September 2020)
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
This seminar is held online as well as at the venues.
 Part of Safety Management Technology (Tokyo, October 2020 and Osaka, September 2020)
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
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Copyright © The High Pressure Gas Safety Institute of Japanactivities.
 Part of Lessons from Accidents and Safety Measures (Tokyo, October 2020 and Osaka,
September 2020)
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 2020)
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 2020)
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 (Online, March 2021)
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 participate as a delegate to online conferences organized by the American Society of MechanicalEngineers (ASME), and also has established good relations with Korea Gas Safety Corporation andIndustrial Safety and Health Association of Taiwan.
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
and managing 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 2020, it performs registration in 31 out of the 39
JAB-accredited classes (classes 1-39). As of the end of fiscal 2020, the number of registrations stands
at 784.
(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 2020, it operates
registration screenings in 34 out of the 39 JAB-accredited classes (classes 1-39). As of the end of
fiscal 2020, the number of registrations stands at 499.
(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
for organizations of occupational health and safety management systems based on OSHA18001. In
July 2018, the Center initiated management based on newly established ISO 45001. As of the end of
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Copyright © The High Pressure Gas Safety Institute of Japanfiscal 2020, the number of registrations stands at 29.
(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 ofthe end of fiscal 2020, the number of registrations based on ISO 22000 stands at 7 and that based on
FSSC22000 series stands at 9.
Number ofregistrations
1800
1700
1600
1500

1613

1642 1636
1575
1520
1462
1394

1355

1400

1328
1259

1300
1200

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fiscal Year

Change in the total number of registrations

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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, 2021
839
191
82
34

March 31, 2020
846
191
82
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 2011 and 2020 classified as
human damages. Note that among the HPG accidents, the figure excludes those involving general
consumers, which pertains to LPG Act.

Number ofaccidents/injuries or deaths
100
90
80
70
60
50

40
30
20
10

Year

0

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Number ofaccidents

33

43

36

31

50

40

37

45

44

38

Number ofdeaths

1

3

2

3

2

4

1

0

2

3

Number of
injuries

69

86

44

73

68

51

46

66

62

53

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

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Copyright © The High Pressure Gas Safety Institute of Japan

Figure 2 shows the LPG Act accidents that occurred between 2011 and 2020 classified as human damages.
The total number of the LPG Act accidents classified as human damages is gradually decreasing.

Number ofaccidents/injuries or deaths
100
90
80
70
60
50
40
30
20
10
0

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Number ofaccidents

54

46

45

51

36

27

40

30

21

11

Number ofdeaths

1

1

3

1

2

0

0

1

0

1

Number of
injuries

88

85

52

76

60

52

50

46

32

29

Year

Figure 2: 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

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Copyright © The High Pressure Gas Safety Institute of Japan