Annual Report for Fiscal 2019
(April 1, 2019 - March 31, 2020)

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

Japan’s economy is in a difficult situation as being deeply depressed by the effects of Covid-19 infection.
And also, this severe situation is expected to continue in the future. It is required to pay attention to the risk
of further decline of the internal and external economics and the effects of the volatility of financial andcapital markets, caused by this infection. Moreover, just as last year, intensifying natural disasters such as
torrential rain in Kyushu area and typhoon No.15 and No.19 have occurred, requiring persistent response.
In the field of high pressure gas safety, as a part of the smartification of high pressure gas safety promotedby the Ministry of Economy, Trade and Industry, a system was established in November 2019, whichenables designated accreditation executors for completion or safety inspection to extend the overhaul
inspection intervals by incorporating CBM(condition based maintenance) (up to12 years→up to theresidual life×0.5 years) . And also, a guideline for setting an explosion proof area in a plant was establishedin April 2019, and a guideline related to the effort to utilize drones in a plant had been revised in March2020.
KHK strengthened governance such as compliance and information security measures in view of its highly
public responsibility. In view of its future business management, KHK conducted the preparation for
restructuring the institutional organization planning to implement from April 2021 (※) and theconsideration for improving the institutional system to suit restructuring the organization. Regarding thelatter, KHK payed due attention to adapt a cloud service with an appropriate level of security while
promoting business improvement and efficiency.
※the exact date of restructuring the organization is reconsidered now because of Covid-19.
Looking at KHK’s business in fiscal 2019, we were able to increase the number of customers for ISO
management systems because some of customers transferred to KHK from other certification bodies andKHK conducted proactive and detailed sales development. And also, our inspections business achieved
solid incomes from inspections. Meanwhile, a part of training courses, examinations, seminars andinspections had to be postponed or canceled because of the Covid-19 infection around the end of fiscal year
in Japan and abroad. However, a reasonable income and expenditure situation was secured in the end by
reducing expenditures.
2. Overview of Financial Statements for Fiscal 2019(1) Balance Sheet(As of March31, 2020)
Assets2019

2018

Million Yen

Million Yen

Current assets

1,974

1,812

Fixed assets(2) Statement of Profit and Loss(from April 1,2019 to March 31,2020)
Expenditure
Ordinary expenditure

2019

2018

Million Yen

Million Yen

4,442

4,739

6,009

5,968

4,442

4,739

Tangible fixed assets

1,035

1,104

Extraordinary loss

5

2

Intangible fixed assets

205

94

Corporate taxes, etc.

1

1

4,767

4,768

Profit for the term

7,983

7,780

Total
IncomeInvestments
Total

Operating expenditure

2019

2018

Million Yen

Million Yen

Current liabilities

830

804

Fixed liabilities

2,181

2,168

Operating income

Reserve

4,807

4,878

Non-operating income

Liabilities/Capital

Profit for the term
Total
1

163

-70

7,983

7,780

Ordinary income

Extraordinary income
Total

163

-70

4,612

4,671

Million Yen

Million Yen

4,594
4,504
90
17
4,612

4,671
4,576
94
390
4,671

2017

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 2019, the following standards were established, reviewed or abolished.
(a) Newly Established Technical Standards
 Periodical Self-inspection Guidelines for Compressed Hydrogen Filling Station (KHK/JPEC S
1850-9)(b) Revised Technical Standards
 Standard for Design and Manufacturing of High-Pressure Gas Container Valve (KHKS 0124)
 High Pressure Gas Tank Trailer Re-inspection Standard (KHKS 0150)
 Standard for Designated Equipment with Safety Factor 2.4 (KHKS 0224)
 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)(c) Abolished Technical Standards
 Technical Standard for 70 MPa Compressed Hydrogen Storage Containers for Vehicle Fuel
Systems (KHKS 0128)

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Copyright © The High Pressure Gas Safety Institute of Japan

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 2019, the number of application for inspection of containers increased by 11.2% and that ofaccessory equipment increased by 3.1% compared to the previous fiscal year respectively. And thenumber of application for inspection of designated equipment increased by 9.8% compared to theprevious fiscal year.
Number ofcontainers/K

Container

2,500
2,111 2,162 2,149
1,892

2,000

Accessory

Number ofaccessories/K

2,217

2,262

24,0002,082 2,035
20,000

1,807

1,595
1,500

16,0001,000

12,00011,165500

11,555
9,742

9,917

10,893

10,735
10,263
10,651

9,760

10,058

0

8,000

4,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Fiscal Year

Number of Container/Accessory inspections

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Copyright © The High Pressure Gas Safety Institute of Japan

Number of
equipment
25,00019,18720,00017,476
13,74915,00010,951

14,90914,311

15,22013,72011,644 12,161

10,0005,000

02010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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
2019
2018
Accredited completion inspection executor

14

15

Accredited safety inspection executor

1516(c) Safety Inspections of Refrigeration and Air-Conditioning Facilities
The number of inspections of refrigeration and air-conditioning facilities undertaken by KHK
2019
2018
Completion inspection of refrigeration and air-conditioning facilities
Safety inspection of refrigeration and air-conditioning facilities

4

34

36

1,592

1,803

Copyright © The High Pressure Gas Safety Institute of Japan

Approval of specified equipment (refrigeration equipment)

130

188

Transfer of specified equipment (refrigeration equipment)

1

2

Testing of refrigeration apparatus

382

307

Design strength verification test, etc.

239

150

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
2019

2018

Qualification Training

38,79044,616

Re-training (Compulsory training)

43,341

46,544

Statutory training

85,02091,160Among the statutory training, while there was a decrease in the number of the qualification training
from 44,616 in fiscal 2019 to 38,790, that of the re-training (compulsory training) decreased from46,544 to 43,341 in fiscal 2019. The total number of applicants of the statutory training decreased
from 91,160 to 82,131.
(b) Other Training
During fiscal 2019, 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 2019, KHK published 143 types ofbooks, accounting for a total of 182,275.

5Copyright © The High Pressure Gas Safety Institute of Japan

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 2019 was 52,204, which was a decrease of 2.3% compared to 53,419 from theprevious fiscal year.
Number ofapplicants
70,00065,00062,33260,00057,46757,17059,59558,36558,231

55,40154,28155,00053,41952,20450,000
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

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 2019, KHK conducted six 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 and6

Copyright © The High Pressure Gas Safety Institute of Japan

Development 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 2019.
 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 2019, the following examination activities were undertaken.
Examination activities
2019
LPG leak alarm examination and gas leak senor
2,683,431
LPG incomplete combustion alarm examination
25,700LPG sensor examination
2,080

2018
2,716,640
26,3201,890

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 2019 include the following: Grand Conference of National Association of General High Pressure Gas Safety Organizations (Tokyo,
July 2019)
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, August 2019 and Osaka, August 2019)
This seminar is for the accredited completion and safety inspection executors and the personnelof three management divisions (equipment, operation, and safety), including those at
7

Copyright © The High Pressure Gas Safety Institute of Japanheadquarters 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 2019 and Osaka, August
2019)
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 2019)
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 (Osaka, October 2019)
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 2019)
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.

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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 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 2019, it performs registration in 31 out of the 39
JAB-accredited classes (classes 1-39). As of the end of fiscal 2019, the number of registrations stands at
823.
(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 2019, it operates registration
screenings in 34 out of the 39 JAB-accredited classes (classes 1-39). As of the end of fiscal 2019, thenumber of registrations stands at 527.
(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
2019, the Center initiated management based on newly established ISO 45001. As of the end of fiscal
2019, the number of registrations stands at 30.
(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 2019, the number of registrations based on ISO 22000 stands at 7 and that based on
FSSC22000 series stands at 7.
Number ofregistrations
1800
1700
1600

1649

1613

1642 1636
1575
1520
1462

1500

1394

1355

1400

1259

1300
1200

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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, 2020
846
191
82
33

March 31, 2019
854
191
85
32

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 2010 and 2019 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

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Number ofaccidents

41

33

43

36

31

50

40

37

45

37

Number ofdeaths

3

1

3

2

3

2

4

1

0

2

Number of
injuries

78

69

86

44

73

68

51

46

66

54

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 2010 and 2019 classified as human damages.
The total number of the LPG Act accidents classified as human damages is gradually decreasing. In 2019,no accident resulting death has occurred.
Number ofaccidents/injuries or deaths
100
90
80
70
60

50
40
30
20
10

Year

0

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Number ofaccidents

63

54

46

45

51

36

27

40

30

20

Number ofdeaths

5

1

1

3

1

2

0

0

1

0

Number of
injuries

83

88

85

52

76

60

52

50

46

31

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