Competitive Feedstock, Stable Supply and Safety Measures
Tokyo Gas stably procures cost-competitive feedstock, while its diversified disasterprevention system covering every aspect of operations from the production and supplyof city gas to its use fully assures safety.

New LNG Contracts Will Improve Competitivenessand Enhance Flexibility

Piltun-Astokhskoye(Oil field with some associated gas)

RussiaTokyo Gas currently imports a total of 7.5 million tons of LNG annually from six countries, andcontinues to study sourcing of additional supply to respond to future increases in gas demand.
Supply from the Malaysia III Project, the NWS Expansion Project in Australia, and the Darwin LNG
Project should come online in sequence from 2004. Moreover, in May 2003, Tokyo Gas concluded aheads of agreement covering the purchase and sale of LNG produced by the Sakhalin II Project. TheSakhalin II Project is the first Russian project to supply natural gas to Northeast Asia, and its
abundant reserves and proximity to the market are significant advantages. Contract terms of these
new agreements and the use of Company-owned LNG carriers will add to competitiveness andflexibility in procuring LNG.

Lunskoye(Natural gas field)
Nysh

Sakhalin Island
Pipeline
Yuzhno-Sakhalinsk

Prigorodnoye(LNG/oil terminal)

Tokyo Gas Co., Ltd.

■ Tokyo Gas LNG Imports

Nogliki
DeKastriJapan
AlaskaSakhalin

Tokyo21

Tokyo

Annual Report 2003

Qatar
BruneiMalaysia
Indonesia

Australia

Annual LNG Imports(March 31, 2003)

Milliontons% of total
imports

Malaysia
Australia
BruneiIndonesia
Qatar
Alaska

3.41
1.34
1.24
0.84
0.36
0.32

(45.5%)(17.8%)(16.5%)(11.1%)(4.8%)(4.3%)

Total

7.51

(100.0%)

Maintaining Stable Supply
In tandem with the objective of a stable and economical feedstock procurement system, Tokyo Gas works toensure stable supply by employing a thorough array of disaster-prevention facilities covering production,
distribution and consumption to guarantee safety. The Center for Supply Control and Disaster Management
conducts 24-hour monitoring and control of gas production and supply using the Total Gas Control System (TGCS).
This supply control system is designed to assure a stable supply and to take necessary measures quickly and safely
in the event of a disaster such as a major earthquake.

Thorough Safety Measures
Disasters caused by earthquakes can threaten the safety of the city gas supply system. Prevention, response
and restoration are the three pillars of the Company’s comprehensive earthquake countermeasures. Prevention
includes the incorporation of the latest earthquake-proof technology in the design of our production and supply
facilities to prevent damage. In addition, we have constructed the world’s most extensive ultra-high density realtime seismic motion monitoring and disaster mitigation system, which remotely shuts off the supply of gas shoulda gas leak emergency occur, thus substantially minimizing the threat of secondary damage. We have also
developed and are now refining a restoration support system to determine the most efficient plan for safely andquickly restoring service in the event of an interruption in the supply of gas.

The signing of the heads ofagreement covering the purchaseand sale of LNG produced by theSakhalin II Project