Kazuhiro Ezawa
Chairman/Japan LP Gas Association
The International LP Gas Seminar 2023
March 7, 2023

LP Gas Association

ChairmanKazuhiko Ezawa (Representative Director President, ENEOS GLOBE Corporation)
Establishment
1963
MissionSecuring stable supply and safety measures, demand development,
environmental protection, public communications, statistics, policy proposals
and other LP gas related activities
Members(10 Japanese primary distributors, producing / importing LP gas in Japan)
Astomos Energy Corporation
ENEOS GLOBE Corporation
GYXIS Corporation
ITOCHU Corporation
Iwatani Corporation
Japan Gas Energy Corporation
Kygnus LP-Gas Co., Ltd.
National Federation of Agricultural Cooperative Associations
Taiyo Oil Co., Ltd.
Tokyo Gas Co., Ltd.
1

Contents
1. LP Gas Demand and Supply Trends
2. Resilience of the LP Gas Industry
3. Pathway to the Green LP Gas

2

Contents
1. LP Gas Demand and Supply Trends
2. Resilience of the LP Gas Industry
3. Pathway to the Green LP Gas

3

Fiscal Year

LP Gas Demand Trend in Japan LP gas demand in recent years has been around 13-14 million tons.
(KT)

Total

14,151

Electricpower

294

Chemical2,572

City gasAutogas
Industrial

995
985

14,687
182
2,762
1,110
940

14,114

13,931

12,787

12,536

145

81

2,715

2,840

2,136

1,893

869

1,100
773

1,097
529

1,312
551

3,157

3,140

3,098

2,691

1,127

3,030

3,309

6,275

6,384

6,101

5,997

5,927

6,089

FY2016FY2017FY2018FY2019FY2020

FY2021

Residentialand commercial

Source: Ministry of Economy, Trade and Industry (METI), Japan LP Gas Association(Note)
FY: Fiscal year (April-March)
CY: Calendar year (January-December)

4

Calendar YearSales Volume by Segment (comparison among CY2019, 2020,2021)

 LP Gas sales volumes in total has been recovering to the level before COVID-19.
 Sales volume for City gas has rapidly increased but that for Autogas has kept declined.
(KT)

14,166

13,796

Change13,053

8,000

7,355

7,122

7,303

6,000

CY2019→2020

CY2020→2022■ Total (all segments)▲7.9 %+5.7 %■ Residential and commercial▲3.2 %+2.5 %■ Industry▲4.5 %▲3.8 %■ Autogas▲28.1 %

▲12.4 %■ City gas▲11.1 %

+80.4 %■ Chemical▲7.9 %▲13.2 %

4,000

2,727 2,604

2,505
2,114

1,733

2,000

1,319 1,172
5870Total (all segments)
Source: Japan LP Gas Association

2,178

2019 2020 2022

Residentialand commercial

2019 2020 2022

Industry422

1,504370

2019 2020 2022

Autogas2019 2020 2022

City Gas2019 2020 2022

Chemical5

LP Gas Import Sources by Country: Trend in Japan (Propane and Butane in total) Calendar Year In addition to imports from the USA and the Middle East,
Canada’s and Australia’s shares have been increasing.
 No import from Russia ever before.
Total

10,521
5.9%
3.8%

(KT)

10,787

9,858

10,333

10,812

1.6%
3.3%

1.8%
9.1%

1.8%
7.3%

1.3%
11.1%

8.5%

12.5%

Timor-Leste& others
Australia

Total:27%

14.8%

31.8%
Canada

64.1%
68.7%

69.6%

62.7%

11.9%

8.8%

10.0%

CY2020CY2021

CY2022

USA

58.6%
30.9%

CY2016
Source: Japan LP Gas AssociationCY2018

Middle East

6

Russian Exports by Energy Sectors and Europe’s Dependency
 LP gas exports from Russia is relatively small compared to crude oil and petroleum products.
Also, Europe’s dependence on Russia is low.
 The Ukraine’s situation currently gives minor impact on the global supply and demand balance of LP gas.

Export ※１

EnergyExport Destination (%)

Europe’s
Dependence onRussia(%)

PJ ※2basedEurope ※3

Crude oil andpetroleum products

7.6 million
18,000 PJ
BD53 %

39 %

8%

31 %

Natural gas(including LNG)

8.5 trillion
CF

9,000 PJ

78 %

22 %

0.3 %

34 %

Coal

210 million
tons

5,000 PJ

35 %

56 %

9%

21 %

LP Gas

5.3 million
tons

270 PJ

85 %

―15 ％

14 %

Asia

OthersNone to Japan【Breakdown of LP gas】
ExportRouteLand (railway)

77%

Source: BP Statistics (2021), etc.

Sea (ship)

23%

ExportDestination

PolandUkraine

FinlandGermanyOthers(Belarus etc.)

50%

20%

10%5%15%※1︓Actual 2021 data for LP gas. Actual 2020 data from BP statistics for other energies.
※2︓PJ (petajoule): A unit of energy, a thousand trillion (10 to the 15th power) joules.
※3︓In principle, CIS countries such as Belarus are excluded.

7

Recent Issues Related to Panama Canal Transition
Under the situation that Japan imports LPG From the U.S. more then 60%, there remains atask which may lead to less competitiveness of LPG shipping navigation due to thecontinuous increase in Panama Canal tolls, chronic congestion in canal passage,and passage priority given to container ships and etc. after change in reservation rules.

Ⅰ. Increase in tolls【Impact on shipping freight】(※1)+ $459,000/vessel

2025

2022

$974,000$515,000(round-trip)

Ⅱ. Increase in waiting times
Northbound10 to15 days

LP gas imports from the US(equivalent to VLGC 158 vessels/year)

Ⅲ. Task for reservation rules

Middle East
20 days(via Cape of Good Hope)

2023年3月〜

365 days in advance

14 days in advance(Period 2)

30 days in advance(Period 1.a)

No change (Period 1)

LNG carrier

80 days in advance(Period 1.a)USA32+12＝USA〜2023年2月

Passenger/Container ship

8(via Panama)

Until 2020

[Reference](※2)

【Voyage days from US (Gulf of Mexico) to Japan】(one-way)

Period: July-December 2022

≒ ¥10 billion/year※1 CY2021 US imports: 7.11 million tons
※2 Exchange rate: 135 yen/$

Average 12 days

Southbound 10 to 15 days

$459 thousand/vessel ＝$73 million/year

Modified to Period 1.a same as LNG carrier fromMar but priority is given to LNG carrier when slot iscompeted.

730 days in advance for Passenger ship (special period)
No change for Container ship
30 days in advance (Period 1.a)8

Arabian Light (AL) Crude Oil and CP Price Trends
 The average AL equivalent of 2019 fell to a record low of 82%.
 From 2020 to 2021, the AL equivalent exceeded 100% due to weak crude oil market
brought by COVID-19.
 In 2022, CP dropped much below the AL equivalent for the first time in 3 years (89%)
AL,CP
($/T)
900

Freight($/T)

Arabian light crude(propane calorie equivalent value)

200

Saudi Arabia CP700Freight500(Middle East→Japan)

100

300
100
Jan-19(%)
150

0Jan-20Jan-21Jan-22

Arabian light crude (propane calorie equivalent value)index AL=100Saudi Arabia CP

Jan-23Highest:119% (Jan.)
Lowest :71% (Oct.)10050Jan-19CY2019Ave. 82%

CY2020Ave. 110%Jan-20CY2021
Ave. 115%
Jan-21

CY2022
Ave. 89%
Jan-22

Jan-239

Contents
1. LP Gas Demand and Supply Trends
2. Resilience of the LP Gas Industry
3. Pathway to the Green LP Gas

10

Maintain Stockpile System and Supply Chains Establish and maintain supply chains in preparation for disasters.
Specified quantities of LP gas are always
stockpiled in government and private facilities.

St o ck pi l e syst e mClassification

Stockpiled quantityRemarks

National stockpile

1,394 KT

Equivalent to

Mandatory private stockpile

1,111 KT

Equivalent toRelevant law:
“Oil Stockpiling Act”

50 days imports.
40 days imports.
Fukushima National Stockpile Base andAdjacent Private Base.

(as of the end of October 2022)

Mobile Power Generator Cars are deployed at certain bases for power
recovery when electricity supply is lost.

Mobile Power Generator Cars

Power connection trainingPlacement
Mobile power Generator Cars
Power receiving equipment

AomoriNiigata

NanaoChiba

Fukushima

A mobile power generator car connected topower receiving equipment at the base.

Collaboration against an Emergency

KawasakiPower supply from the on-board generator.

Yokkaichi

Build a collaboration system to maintain supply in domestic logistics.

Regional collaboration

Formulation of Companies to cooperate within the specific regions and supply LP gas to theEmergency supply collaboration plan: disaster area in case of emergency.

Securing traffic routes

Nominated as LPG trucks are registered as “Emergency Vehicles” those can run major
Designated Public Institution: highways even road transportations are restricted in an emergency.

Mutual support between primary
suppliers

Conclusion of Mutual support among LP gas companies of the Japan LP Gas Association in
Mutual assistance agreement: the event of supply insecurity in an emergency.

11

AC Installation Status of Public Elementary and Junior High School Gymnasiums


The AC (Air Conditioner) installation rate of public elementary and junior high school gymnasiums
nationwide is as long as 15.3%.

The challenge is to enhance installation of AC in the gymnasiums, which serve as evacuation centersin the event of a disaster.

Advantages unique to LP gas

AC installation rate
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%0%

■Long-term storage is possible as LP gas does not degrade.

93.0%
78.4%

Ordinaryclassrooms

60.2%■Disaster response capability due to being decentralized energy■ Good communication/relations with local governments

95.7％
Gymnasiums

15.3％

2.0%

3.2%

9.0%

Jan-18Jan-19Jan-20Jan-21

Jan-22

Source: Ministry of Education, Culture, Sports, Science and Technology【Gymnasiums details】
Number of gymnasiums

Number of installations

35,437

5,422

Installation rate

15.3％

Approximately 150 schools with LP gas types(LP gas activated) for gymnasiums→ Only 2.8% with LP gas types

Bulk System installations subsidized by government(Unit: Hundred million yen)

FY2021

FY2022

FY2023

33.6

40.4

49.0
33.3

(Self-defense stockpile budget)※Including supplementary budget

15.7(Tank introduction budget)

12

Contents
1. LP Gas Demand and Supply Trends
2. Resilience of the LP Gas Industry
3. Pathway to the Green LP Gas

13

Summary of Research and Development by the Institute of Japan Green LP Gas Promotion
Established

October 18, 2021

Members

Astomos Energy, ENEOS GLOBE, GYXIS, Japan Gas Energy, Iwatani, JLPGA (sub-member)

Project１

Project２

Announcement
date

October 20, 2021

Adopted on February 25, 2022

Development
theme

Inter cooler (ITC) type multi-stage LP gas
direct synthesis method (self-fundedresearch)

Research and development of carbon
recycling LP gas technology (NEDO project)

Development
periodOctober 2021 to 2024

From April 2022

Development
system

Empirical research with Professor Kaoru
Fujimoto of the HiBD Research Institute(Emeritus Professor of University of Tokyo,
Specially Appointed Professor of the Universityof Kitakyushu) in collaboration with theKitakyushu City University.

Empirical research with the National Institute ofAdvanced Industrial Science and Technology(AIST) and N.E. Chemcat Corporation (a majorcatalyst manufacturer)

Phase 2: 2025-2030
Conducting Scale-up of empirical research for social implementation: Plant (100 kg/day)Phase 3: 2030-2050
Early 2030s : Realization of social implementation / 10 to 100 tons/day
Until 2050

: Aiming to replace all LP gas demand with green LP gas

14

Domestic

LP Gas Synthesis Technology Development in Japan and Overseas
Business Operator

Collaborators, etc.

Furukawa
ElectricAstomos Energy
Iwatani
Hokkaido
University/Shizuoka
University

Business Summary
LP gas synthesis from synthesis gas
obtained by dry reforming reaction ofbiogas obtained from livestock
manureBudget scale, etc.
Ministry of Economy,
Trade and Industry(GI Fund) Approx.

〜FY2030

NEDO;〜FY2024

3.6 billion yen

University ofToyama
Nippon SteelENEOS GLOBE Joint research and development ofKubota

Ministry of theKyoto University
Synthesis of LP gas using biogas
Waseda University obtained by collecting rice straw as a raw Environment;
Demonstration project ofmaterial (1st year entrusted deposit :innovative catalyst
190 million yen)technology forcarbon recycling LP gas production
technology and processes.

Implementation Period

Effective use of technology
and project demonstrationof CO2 at research anddevelopment bases.

〜FY2029

decarbonization throughKochi Prefecture Waseda University Synthesis from algae and wood-based regional resource recycling
Kochi Universitybiogas
Approx. 15 billion
yenOverseas

NESTE

Dimeta B.V.

SHV (Netherlands)

SHV takes over bio-LP gas (40,000tons/year) produced as a by-product at
NESTE's biodiesel plant in Rotterdam,
Netherlands.

SHV(Netherlands) Production of 50,000 tons per year ofbio-DME (rDME) using household waste
UGI(U.S.A.)
in the northeast of England (Teesworks)

UGI (U.S.A.) GCEH（AmeriGas)

UGI takes over 20,000 to 30,000 tons/year of bioLP gas produced at the bio plant of GCEH (Global(9 billion yen)

End of
2016〜

150 million pounds

Operation starts(25 billion yen)from mid-2024

6 billion euros

2022〜

Clean Energy Holdings) in California (Bakersfield)
and sells it at local areas.

15

Establishment of the “Public-Private Study Group for Promotion of Green LPG”
Purpose of establishment of study group(First meeting) July 26,2022● In order to realize a carbon-neutral society by 2050, a number of projects aimed at developing green LP gas
production technology are being launched within the LPG industry.
● On the other hand, there is no place for the public and private sectors to share and discuss issues such as
creating milestones for social implementation, unifying quality standards, and reducing the energy
consumption of combustion equipment during the “transition period”.
● For solving these issues, and for public and private sectors to hold wide-range discussions and share theinformation, Japan LP Gas Association (Institute of Japan Green LP Gas Promotion) takes the initiative insetting up a study group with the participation of the Ministry of Economy, Trade and Industry.

Study group members

Chair： Kikkawa, Vice President ofInternational University of Japan
Secretariat： Japan LP Gas AssociationIndustry

Japan LP Gas Association (Institute of Japan Green LP Gas
Promotion), Japan L. P. Gas Sales Association, Furukawa Electric,
Kubota, Japan Industrial Association of Gas and Kerosene
Appliances

Academic

Professor Sekine (Waseda University), NEDO, AIST

Government

Ministry of Economy, Trade and Industry (METI)L）Mr. Kikkawa, VP of IUJR）Mr. Sadamitsu, Director-General,
Natural Resources and Fuel Department

Discussion themes at the study groups (examples)Creating milestones for the LP gas industry toward social implementation



Future procurement methods for hydrogen and CO2

Promotion of the energy-saving equipment during the “transition period”

Clarifying the position of CNLPG (voluntary carbon credits) and organizing issues

Creating new quality standards/Ensuring safety/Third-party certification as a non-fossil fuel, etc.

16

LP Gas Quality Standards
Law/standard nameRegulation of LPG Act※1JIS K 2240

Quality guidelines
Test method

ItemUnit

No. 1No.2No.3

Type 1 No. 1 Type 1 No.2 Type 1 No.3 Type 2 No.1 Type 2 No.2 Type 2 No.3 Type 2 No.4

Density (15°C)

g/cm3―Vapor(40°C)

MPa

1.53 max.

1.53 max.

5 max.

5 max.

pressure

0.500～0.620

PropaneButane0.500～0.620
JIS K 2240

1.55 max.

1.25 max. 0.52 max.

1.53 max.

0.52 max.

5.0Max.

Report92.0min.

ReportReport

95.0min.

Report

2.0 max.

Component
EthaneEthylene
PropanePropylene

80 min.

Butanemol%

60 min. Under
under 80
60―※280 min.

60 min. Under
under 8060―
90 min.

20 max. 40 max. 30 min. 10 max. 50 max.

Butylene
1,3-butadiene

0.5 max.

PentaneCopper
corrosion

0.5 max.

10 max.

50 min.
90 min.
under 90――

stripeJIS K 2240
ASTM D2163

Under 0.1 wt%
Report

2.0 max.

1 max.

1 max.

50 max.

50 max.

92.0% or more is required to satisfy No.1 of the Act on
Liquefied Petroleum Gas because heavy components areconcentrated when repeatedly filled.

10 max.

JLPGA-S-03

None※4JLPGA-S-02

JIS K 2240

Sulfurmg/kg

Evaporation
residuemg/kg―Free water
Mercury

50 min. Under
under 9050

mg/Nm3

No corrosion to supplyequipment※3―0.009
max.

0.08 max.

JLPGA-S-07※1 Article 12, Paragraph 1 of the Act on the Securing of Safety and the Optimization of Transaction of Liquefied Petroleum Gas (LPG Act)
※2 Liquefied petroleum gas according to Article 2 of LPG Act refers to gas mainly composed of propane, butane, and hydrocarbons (propylene) specified
by cabinet order.
※3 Enforcement of Regulation exemplary standard 39※4 If it is 70 mass fraction ppm or less for propane and 40 mass fraction ppm or less for butane, it is determined that there is no free water.
※5 In addition, quality guidelines stipulate the addition of methanol to propane in winter season (maximum 2,400ppm).

17

2023 Slogans of the Japan LP Gas Association

LP gas that supports a green future and life
〜 Aiming for coexistence with the earth 〜

Ensure stable supply

Strengthen resiliencecapabilities

For the contribution to the realizationof a Carbon Neutral (CN) society・Support transitions
・Greening of LP gas
18