Building and Creating LNG Demand in Asia - JOGMECtechno-forum.jogmec.go.jp/2018/detail/files/presentation/...Contents 1．Tokyo Gas Company Profile 2 ． Increasing Role of LNG in

JOGMEC Techno Forum 2018

Building and Creating

LNG Demand in Asia

Kentaro Horisaka Tokyo Gas Co.,Ltd.

27 November 2018

© 2018 Tokyo Gas Co., Ltd. All Rights Reserved. 1

Contents

１．Tokyo Gas Company Profile

２．Increasing Role of LNG in Asia

３．LNG Infrastructure and Demand Creation

４．Tokyo Gas Activities in Asia


Contents






4

名古屋地域

大阪地域

Total

$4.5Trillion

■Company Name

Tokyo Gas Co., Ltd. Established in 1885

■Number of Employees

17,138 (Consolidated as of March 2018)

■Credit Rating

Aa3 (Moody’s) AA- (S&P)

■Business Area

Tokyo Metropolitan and

surrounding Kanto Region

■Number of Customers

11.7 million (As of March 2018)

■Net Sales

USD 15.7 billion (FY2018, Consolidated) @1 USD = 110 JPY

Tokyo

Nagoya Osaka

GDP of Japan （FY2011）


Corporate Information

Our Business Domain - Our business domain includes upstream development, LNG transportation, downstream

business such as LNG regasification, pipeline transmission and distribution, and gas and power retail.

- Our strength lies in the experience and the expertise throughout the entire LNG value chain.

Overseas Upstream and Downstream Businesses





Procurement and Transportation

Production And Supply

Energy Solutions

Gas Transmission and Distribution

High-pressure pipeline Low-pressure pipeline (polyethylene pipe)

Gas intelligent meter

1,450,000 tons equivalent* 14 million 3,845,000 kl

15,720 million m3

2,252 mil. m3 14% 3,466 mil. m3 22% 7,293 mil. m3 46% 2,709 mil. m3 17%

as of 2016.

5 © 2018 Tokyo Gas Co., Ltd. All Rights Reserved.


6

The trend from 1964 to 2016 Billiom m3

wholesale

power plant

industrial use

commercial use

residential use

The number of

customer

• The number of customers has steadily increased and exceeded 11 million in FY2014. • Gas demand has grown as a result of the effort on the development, diffusion of gas

appliances and solution based marketing.

Million customers


The trend of TG gas sales volume, the number of customers

Contents






8

Primary energy consumption will continue to grow in Asia

© 2018 Tokyo Gas Co., Ltd. All Rights Reserved. Total primary energy demand by region,2015-2035

2. Increasing Role of LNG in Asia

9

Primary energy consumption in selected countries and regions

Source: IEEJ Outlook 2019

China and India are the world largest consumers in mid-

2040.

Energy consumption is also on the rise in ASEAN countries.


10 © 2018 Tokyo Gas Co., Ltd. All Rights Reserved.

With the demand expected to increase beyond supply

capacity of domestic gas resources, many Asian

countries are looking to develop or increase LNG import

capacity, creating a sizable demand for LNG in the region.

Source:IEA Southeast Asia Energy Outlook 2017


11

Already introduced Under Planning

Japan

The situation of LNG introduction

China Korea

Taiwan

India

Sri Lanka

Indonesia

Philippines

Bangladesh

Singapore

Malaysia Thailand

Vietnam

Myanmar

© 2018 Tokyo Gas Co., Ltd. All Rights Reserved.

Examples of Asian countries that have already introduced

LNG import or planning to introduce LNG import.

Pakistan


Source: IEEJ Outlook 2019

Natural gas consumption in Asia continues to increase.

By region By sector


12

13 Source:IEEJ Global

LNG Outlook

Additional LNG supplies are expected to come from

various parts of the world.

With more suppliers and buyers of LNG, further

increase in liquidity of the LNG trade can be expected.



Contents






Downstream demand creation will allow effective and

efficient use of the newly invested LNG infrastructure.


City gas Distribution

LNG Unloading, Storage, Re-gasification,

etc.

LNG Transportation

Gas Liquefaction

International LNG trading

Services to Customers

Regasification, Distribution, Marketing

Gas Wells Development

3. LNG Infrastructure and Demand Creation

15

16

＜Power plant＞＜Industrial use＞


Typically, the demand drivers are gas fired power

generation and industrial use.

Natural gas can also be utilized in the district wide use of

energy including district heating and cooling.

＜DHC＞


17

Gas Pipeline


Small Scale Ship

LNG Tank Lorries

Pipeline

Lorry

Ship

Terminal

There are several modes by which the LNG can access

the location of demand from the LNG receiving terminal.


18

Value of natural gas increases when combined with

energy efficient solutions and technologies (combined

heat and power, efficient boilers, etc). efficient solutions → promote use of natural gas

More application (burning, heating, cooling, onsite

power gen, etc) for gas will lead to greater demand for

gas.

Policies/regulatory incentives can also promote the

use of gas.

Ex.) Air Pollution Control Law (1968, Japan)


19

Efficient Land Use

Before After

Gas is introduced

Natural gas is easy to handle (in comparison to coal or

oil products) and conversion to gas from other energy

products can add values on top of the energy efficiency

and cleanliness.

tanks



A good understanding of the policies, characteristics

and needs in each market is essential.

In demand creation…

It is important to promote the many advantages of

natural gas use (environmental friendliness, energy

efficient solutions, wide application, ease of use, etc.)

20


Contents






Our activities(Malaysia)

22 Co-generation system Industrial boiler

Gas Malaysia supply area Establishment of GMEA

4．Tokyo Gas Activities in Asia

Gas Malaysia

Tokyo Gas is one of the founding members of Gas Malaysia (gas

distribution company). Gas Malaysia has experienced significant growth

since its inception in 1992.

GMEA (Gas Malaysia Energy Advance)

JV between Gas Malaysia and Tokyo Gas affiliate. It has been providing

energy saving service for industrial customers since 2014.

Our Activities(Vietnam): Establishment of LNG VIETNAM

In July 2016, Tokyo Gas Asia established LNG VIETNAM JSC

together with PetroVietnam Gas and Bitexco Group of

Companies aiming to conduct business activities such as LNG

procurement, LNG sales and LNG receiving terminal

construction and operation.

Assignment of Board Members of LNG VIETNAM LNG terminal in Japan © 2018 Tokyo Gas Co., Ltd. All Rights Reserved.

23


Our Activities(Vietnam): Investment in PVGD

In July 2017, along with equity interest acquisition, Tokyo Gas Asia and PVGD have agreed upon a strategic alliance.

Signing ceremony of strategic Alliance

Agreement Distribution area



Our Activities(Indonesia): Investment in PRA

In October 2017, along with equity interest acquisition, Tokyo

Gas Asia and Development Bank of Japan through a newly

established joint venture, have acquired 33% shares of gas

distributor PT Panji Raya Alamindo (PRA).

Picture from Closing Ceremony Distribution area © 2018 Tokyo Gas Co., Ltd. All Rights Reserved.

25


Our activities(Philippine):to express the interest to develop LNG value chain


Tokyo Gas Co., Ltd. submitted a Letter of Intent to Department of

Energy of the Philippines on 30 October 2017, to express the

interest to develop LNG value chain by building its first LNG

terminal in the Philippines.

26


●Bangkok ●Hemarat 2 ●Hemarat 4 (Industrial Park)

Our activities(Thailand):Investment in Gas distribution company

27



In Jan 2018, Tokyo Gas Asia and Mitsui through a

newly established joint venture have acquired 30%

shares of gas distributor GWHAMT in an industrial park.

28

Thank you for your kind attention.

Documents

Building and Creating LNG Demand in Asia - JOGMECtechno-forum.jogmec.go.jp/2018/detail/files/presentation/...Contents 1．Tokyo Gas Company Profile 2 ． Increasing Role of LNG in