OTHER
BUSINESSThe Tokyo Gas Group is engaged in a number of businesses asa part of its efforts to the evolution of a total energy business.
Of those businesses, this section contains profiles about theengineering solution business, the LNG sales business, and thereal estate business.

Engineering Solution Business

Integrated previously-separate Group capabilities forengineering and energy solutions
In April 2015, Tokyo Gas Engineering Co., Ltd., engaged inconstruction, maintenance, and management of LNG
terminals and other energy infrastructure, merged withEnergy Advance Co., Ltd., which specialized in energy
service, district heating and cooling service, and electric
power-related engineering business, to establish Tokyo Gas
Engineering Solutions Corporation (TGES).

Tokyo Gas Engineering Solutions Corporation

Integrated engineering
capability of Tokyo Gas
Tokyo Gas Engineering Co., Ltd.

Energy Advance Co., Ltd.

Engineering business

Energy solution business

Energy infrastructure
construction
Energy infrastructure
maintenance and management

District energy services

Onsite energy services

By integrating capabilities in engineering and energy
solutions, which used to be separately available within thegroup, TGES is able to provide one-stop solutions that
better satisfy the needs of our customers in Japan andabroad in a wide range of domains, stemming from receiptof transported or conveyed resources and production of gas
to gas supply, power generation, and energy solutions in theLNG value chain.

Diagram of Engineering Solution Supply
Gas network
Heat network
Electricity network
Utility network
ICT network

high-pressure
pipeline

LNG receiving
terminal

TOKYO GAS ANNUAL REPORT 2016

PlantsMiddle-pressure
pipeline

31

Valve station
Governor station

Medical facilities

Hotels and commercial
facilities

Energy (utility)
service center
Middle-pressure
pipeline

Smart energy center

Offices and housing
complexes

Business outline

Unique engineering solutions, leveraging
accumulated know-howJapan

Established an energy supply system that
responds to Business Continuity Plan (BCP)
Kamatahigashi District Heating and Cooling Center, operated
by TGES since 1998, supplies thermal energy (steam, coolwater) and electricity in the Ota-ku, central Tokyo. In July
2015, in addition to the Center’s adoption of a gas
cogeneration system (CGS) with a blackout start function,
TGES integrated supply desinations with the center’s
electricity system to enable the whole district to use
electricity generated by CGS in times of blackout. Such
optimal management of electricity and heat by use of CGS
contributes to enhance the entire community’s disasterprevention capability.

Overseas

Energy service businessEngineering business

TGES’ overseas subsidiary will provide energy services to
the Toray Group’s plants in Malaysia and the U.S.
The energy services comprise construction of an energy
plant that has gas cogeneration systems, boilers, andequipment such as for air-conditioning and water treatment,
and efficient supply of a wide range of services involving
generated electricity, steam, water, and other resources.
Based on its proven achievement, TGES’ plant design andmaintenance will enable to realize energy savings from its
optimal systems and long-running cost reductions. In return,
TGES will receive energy service fees, based on its longterm customer contract.

TGES was awarded an order for assignment as a project
management contractor (PMC) of the capacity expansion
construction project of PPT LNG Map Ta Phut Receiving
Terminals, Thailand. This is the first PMC order of its
kind received by a Japanese company outside Japan.
These first LNG terminals in Thailand were planned inanticipation of substantial growth in energy demand inkeeping with the nation’s economic development.
The Tokyo Gas Group intends to further promote overseas
business development, leveraging by its frontrunnerexperience and strengths in construction, operation,maintenance, and management of LNG terminals.

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TOKYO GAS ANNUAL REPORT 2016

LNG Sales Business

Expand LNG supply to nationwide range
and advance the LNG value chain through sales
channel expansion
We have been working on expanding our own LNG sales
channel so that it can be used by other gas operators
nationwide, beyond the Kanto region, by use of lorries andaccess to supply from ocean-going LNG tankers.
In October 2012, we started to supply LNG to the Ishikari
LNG Terminal of Hokkaido Gas. This was our Group’s firstuse of an ocean-going tanker to supply LNG we hadpurchased to a domestic gas operator outside the group.
For 11 years starting from that, we plan to supply
approximately 300,000-400,000 tons of LNG a year toHokkaido Gas.
From October 2014, we also started to supply
approximately 300,000 tons of LNG a year to Saibu Gas

Supplying LNG via Overseas
Ocean-Going Tankers

Ishikari LNG Terminal
Hokkaido Gas Co., Ltd.

Hibiki LNG Terminal
Saibu Gas Co., Ltd.

under a 16-year contract.

(Thousand t)

1,147

LNG liquid sales
volumes

1,200920
784

800

604
545
4000
2012.3

TOKYO GAS ANNUAL REPORT 201633

2013.32014.32015.32016.3

Business outline

OTHER
BUSINESS

Real Estate Business

Generating stable earnings by effective use ofhigh-potential sites owned by Tokyo Gas

Chiyodaku
Tokyo Station

The Tokyo Gas Group holds high-potential, large-scale sites
in locations as Tamachi and Toyosu in the Tokyo metropolitan
area. We are developing those real estate holdings, while
limiting the attendant risks, in order to improve asset value by
their effective use. We are also interested in installing a smart
energy network in those development projects as an initiative
to improve asset value.

Shibuya-ku

Shimbashi
StationKoto-kuChuo-ku

Minatoku
Setagaya-ku
Meguroku
Shinagawa
StationShinagawaku

Ota-kuTamachiToyosuLarge-scale development with direct connections toJR Tamachi Station

Complex town planning project in the intended
locations of the Tokyo 2020 Oympics

Tamachi Station and its surrounding area are expected toplay the role of a gateway to Tokyo, as it is close to the Linear
Chuo Shinkansen Line route and has easy access to Haneda
Airport which has a plan for further development. Office andhotel buildings and commercial facilities are underconstruction on this 2.8ha site, and will be directly connectedto Tamachi Station.

The redevelopment area in Toyosu is a prime location, about
4km away from Tokyo Station. The Tokyo Bay area, including
Toyosu, is getting increased attention as it will be a major
location of the Tokyo 2020 Olympics and Paralympics events.
The Tokyo Gas Group is involved in construction of a
combination of residential, office, and commercial functionsin this widespread development area of approximately 20ha.

JR Tamachi Station

Intended location of the Tokyo 2020
Olympics andParalympics Athletes’ Village(Yamanote Line)

Hotel
B

Pedestriandeck

Minato Park Shibaura

Toyosu-ohashi Bridge(scheduled to open in fiscal 2016)

Harumi-ohashiBridge

Tokyo Gas Group site

StoresToyosu MarketASocialServices
Facility

Urban
Planning ParkAiiku
Hospital

Redevelopment area
TGMM Shibaura Project (tentative name)
October

2015

Started construction of the A Tower, Hotel Tower, and Smart Energy CenterApril

2018

Construction of the Smart Energy Center to be completed

May2018

Construction of the A Tower and Hotel Tower to be completed

Shijoumae
StationToyosu Market

Shintoyosu
StationToyosu
StationToyosu Market

Toyosu Smart Energy Center
Fujimi Bridge

Ariake NorthBridge

Yurikamome

Kiyari Bridge

Ariake Tennis noMori Station
Intended location of the Tokyo 2020
Olympics andParalympics Stadium

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TOKYO GAS ANNUAL REPORT 2016