Annual Report for Fiscal 2017
(April 1, 2017 - March 31, 2018)

The High Pressure Gas Safety Institute of Japan (KHK)1. Business Environment and Overview of Operations
The slow recovery of the Japanese economy continued in fiscal 2017, against a backdrop of further
improvements in the employment and income environments. On the other hand, various factors need to betaken into account when considering the outlook for overseas economies, such as the unpredictable
Northeast Asian security situation, US policy trends, the risk of a downturn in business conditions in China,
and the uncertainty accompanying Brexit, while attention to the impact of all these factors on the Japanese
economy should be paid. Moreover, national disasters including torrential rain and typhoons have occurredin Japan, and continuous measures are needed.
Turning our attention to the field of high pressure gas safety, we assiduously carried out and stabilized the“fast track system” and “system for newly-accredited places of business”, which was initiated in earnest as
a part of the smartification of high pressure gas safety promoted by the Ministry of Economy, Trade andIndustry. Specifically, in terms of the fast track system, the assessment results of private standards
implemented by KHK were publicized on our website in March 2018 as the first example of taking
advantage the system, and in terms of the system for newly-accredited places of business, the Ministry of
Economy, Trade, and Industry, based on a preliminary investigation by the KHK, implemented their first
specific accreditation of places of business in December 2017, and the second in February 2018.
While we strengthen governance such as compliance and information security measures in view of our highpublic responsibility, our Research and Development Center equipped with the latest test equipment, wascompleted in July 2017, which led to the enhancement of the research implementation capacity which met
the demands of the present age. Furthermore, we considered our future business management and promptly
undertook the structural reforms.
Looking at the business environment of KHK in fiscal 2017: this year was the first year of cyclic increases
in the number of students on legally-required courses; the number of requested tests for our Research andDevelopment Center increased thanks to the new test equipment; the ISO Registration Center implemented
in advance transition certification to the 2015-version standards, and we strived to reform structures, suchas the creation of new business including holding new seismic seminars by collaboration among concerned
departments, and the review of payment structures. As a result, we were able to secure a reasonable balanceof payments.
2. Overview of Financial Statements for Fiscal 2017
(1) Balance Sheet(As of March31, 2018)
Assets

2017

2016

MillionMillion(2) Statement of Profit and Loss(from April 1,2017 to March 31,2018)
Expenditure

2017

2016

MillionMillionYen

Yen

Current assets

1,627

1,481

Fixed assets

6,062

6,050

Tangible fixed assets

1,162

967

Extraordinary loss

79

0Intangible fixed assets

123

117

Corporate taxes, etc.

676

643

Investments

Ordinary expenditure
Operating Expenditure

Yen

Yen

4,655

4,457

4,655

4,457

4,770

4,965

Profit for the term

298

358

Total

7,688

7,532

Total

5,032

4,815

Liabilities/Capital

2017

2016

Income2017

2016

Million Yen

Million Yen

Million Yen

Million Yen

853

858

4,746

4,379

4,624

4,269

122

110

286

436

5,032

4,815

Current liabilities

Ordinary income

Fixed liabilities

1,957

2,092

Operating income

Reserve

4,581

4,222

Non-operating income

298

358

7,688

7,532

Profit for the term
Total
1

Extraordinary income
Total

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 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 2017, the following standards were established, reviewed or abolished.
(a) Newly Established Technical Standards
 Standard for in-service inspection (for LNG receiving terminal) (KHKS 0850-7)
 Periodical self-inspection guidelines (for LNG receiving terminal) (KHK/KLKS 1850-7)(b) Revised Technical Standards
 Standard for test methods of prototype containers (KHKS 0123)
 Standard for welding repair of welded containers (KHKS 0180)
 Standard for inspection of bulk storage tank (KHKS 0745)
 Standard for inspection of bulk storage tank accessories (KHKS 0746)
 Standard for work prior to inspection of bulk storage tank and accessories (KHKS 0841)
 Safety education guideline for LPG sales operators (KHKS 1701)
 Standard for in-service inspection (for the General High Pressure Gas Safety Ordinance)(excluding stand and cold evaporator) (KHKS 0850-1)
 Standard for in-service inspection (for the Liquefied Petroleum Gas Safety Ordinance) (excluding
stand) (KHKS 0850-2)
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Copyright © The High Pressure Gas Safety Institute of JapanStandard for in-service inspection (for the Industrial Complex Safety Ordinance) (excluding
stand and cold evaporator) (KHKS 0850-3)Standard for in-service inspection (for natural gas stand) (KHKS 0850-5)Standard for in-service inspection (for liquefied petroleum gas stands) (KHKS 0850-6)
Standard for in-service inspection (for LNG receiving terminal) (KHKS 0850-7)
Periodical self-inspection guidelines (for the General High Pressure Gas Safety Ordinance)(excluding stand and cold evaporator) (KHKS 1850-1)
Periodical self-inspection guidelines (for the Liquefied Petroleum Gas Safety Ordinance)(excluding stand) (KHKS 1850-2)
Periodical self-inspection guidelines (for the Industrial Complex Safety Ordinance) (excluding
stand and cold evaporator) (KHKS 1850-3)
Periodical self-inspection guidelines (for natural gas stand) (KHKS 1850-5)
Periodical self-inspection guidelines (for liquefied petroleum gas stand) (KHKS1850-6)










(c) Abolished Technical Standards
 Standard for low pressure rubber hose for indoor use with quick joint at both ends for liquefied
petroleum gas (KHKS 0717)
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 2017, the number of application for inspection of containers decreased by 6.1% and that ofaccessory equipment decreased by 4.4% compared to the previous fiscal year respectively. And thenumber of application for inspection of designated equipment increased by 10.9% compared to theprevious fiscal year.

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Number ofContainer

containers/K
2,500

2,111 2,162 2,149

1,907

2,000

1,892

Number ofAccessory
2,217

accessories/K
24,000
2,082

1,807

20,0001,604 1,595
1,500

16,0001,000

12,000
11,20511,16511,555

500

8,811

9,742 9,917

10,89310,65110,735
10,263 8,000

0

4,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Fiscal Year

Number of Container/Accessory inspections

Number ofequipment
20,00018,48618,00016,00014,00012,00013,844

13,74910,951

11,644

14,90914,311

15,22013,72012,161

10,000
8,000
6,000
4,000
2,000
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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 this4

Copyright © The High Pressure Gas Safety Institute of Japan

pre-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
2017
2016
Accredited completion inspection executor

18

20

Accredited safety inspection executor

1920(c) Safety Inspections of Refrigeration and Air-Conditioning Facilities
The number of inspections of refrigeration and air-conditioning facilities undertaken by KHK
2017
2016
Completion inspection of refrigeration and air-conditioning facilities

42

80

1,741

1,804

Approval of specified equipment (refrigeration equipment)

156

160

Transfer of specified equipment (refrigeration equipment)

6

5

Testing of refrigeration apparatus

104

158

Design strength verification test, etc.

113

155

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
2017

5

2016

Qualification Training

45,694

44,464Re-training (Compulsory training)

45,64332,416

Statutory training

91,33776,880

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 44,464 in fiscal 2017 to 45,694, that of the re-training (compulsory training) increased from32,416 to 45,643 in fiscal 2017. The total number of applicants of the statutory training increased from76,880 to 91,337.
(b) Other Trainings
During fiscal 2017, KHK held periodical seminars including basic lectures on high pressure gas safety(14types at 44 locations), and organized 24 on-site lectures on voluntary safety activities depending on
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 2017, KHK published 139 types ofbooks, accounting for a total of 154,420.
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 2017 was 55,401, which was a decrease of 7.0% compared to 59,595 from theprevious fiscal year.
Number ofapplicants
70,00065,00062,33260,00055,00057,46757,378 57,170
54,73259,59558,231 58,365

55,40154,28150,000
2008

2009

2010

2011

2012 2013
Fiscal Year

2014

2015

2016

2017

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 2017, KHK conducted five 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 2017.
 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 2017, the following examination activities were undertaken.
Examination activities
2017
2016
LPG leak alarm examination and gas leak senor
2,711,220
2,763,618
LPG incomplete combustion alarm examination
22,70028,039LPG sensor examination
1,911
1,930

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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 2017 include the following: Grand Conference of National Association of General High Pressure Gas Safety Organizations (Tokyo,
July 2017)
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, August2017) 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 2017)
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 (Kyoto, October 2017)
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 2017)
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 2017, it
operates registration in 30 out of 39 class JAB accredited (class 1-39). As of the end of fiscal 2017, thenumber of registrations stands at 832.
(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 2017, 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 489.
Number ofregistrations
1,800
1,718
1,700
1,600

1,664
1,604

1,554

1,600 1,597
1,535

1,500
1,400

1,484 1,484

1,321

1,300
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Fiscal Year

Change in the total number of registrations (Quality and Environment)(c) Other Assessment and Registration
As of the end of fiscal 2017, the total number of occupational health and safety management system(OHSMS) registrations was 26. 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, 2018
868
192
96
33

March 31, 2017
871
192
92
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 2008 and 2017 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 2008 and 2017 classified as human damages.
The total number of the LPG Act accidents classified as human damages is gradually decreasing. In 2017,no accident resulting death has occurred.

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

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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