LNG Value Chain for Value Creation
The Tokyo Gas Group engages in a chain of business activities that extends from LNG procurement to transport, the production and supply of city gas, and the provision of energy solutions. The value of LNG is maximized through balanced overall operation as these business activities interconnect.
The Tokyo Gas group has worked to establish and reinforce this value chain and deliver the resulting value to stakeholders.
1. Material procurement (LNG)
We are working with diverse players in Japan and abroad while diversifying our sources, contract conditions, and other factors in order to procure competitive supplies of natural gas.
2. Material transportation
Tokyo Gas Group owns and operates its own fleet of LNG tankers, allowing LNG to be shipped swiftly and flexibly.
3. Production of city gas
By receiving LNG and constantly producing city gas, the Group contributes to energy security in the Tokyo metropolitan area. We are also developing mutual backup systems to ensure uninterrupted city gas supply even in the event of a major incident.
4. Power generation
We operate high-efficiency combined cycle natural gas-fired power stations utilizing our LNG procurement capabilities and our LNG terminals, pipelines and other facilities. We also generate electricity using wind power and other renewable energy resources.
5. Supply of city gas
We are further developing our pipeline network and using LNG tanker trucks and coastal tankers to ensure the safe and uninterrupted delivery of city gas. In addition, we are expanding our wholesale distribution of gas to other gas suppliers.
6. Delivery to homes and business users
The Group develops solutions for homes and business users, combining multiple resources and technologies to reduce both energy consumption and CO2 emissions. These include distributed energy systems (e.g. fuel cells and gas cogeneration systems), wider use of environmentally friendly gas appliances, and renewable energy sources.
Tokyo Gas Group Business Activities
Seven business domains
As a strategy to achieve its Challenge 2020 Vision, Tokyo Gas Group has organized its business into seven domains that form the pillars of its business centered on the city gas business.
Evolution as a total energy business
City gas business
We will link LNG procurements more closely to energy production at LNG terminals and power plants, and fulfill our role as a new gas pipeline operator by ensuring safety, supply continuity, and wider access to gas. We will also add more value for customers by offering integrated energy solutions.
Electric power business
We will promote initiatives to attain our target of acquiring 2.2 million electricity customers and selling 31 billion kWh of electricity by fiscal 2020, while expanding procurement and sale of low-cost, reliable electricity.
Liquid gas business
We will develop and expand our industrial gas operations packaging LNG, engineering, and other services while forging stronger alliances to expand LPG sales.
Value-adding businesses related to energy
Engineering services business
We will offer engineering solutions tailored to customers' needs and expand our service area and business domains.
Residential services business
We will offer fresh value and services that, in tandem with our residential market energy services, enhance customers’ quality of life.
Urban development services business
We will offer community oriented energy solutions and contribute to creating disaster-resilient communities while growing profits through use and management of real estate.
In addition to sourcing gas from existing large scale LNG projects and acquiring participating interests, we are diversifying and expanding our sources and upstream projects overseas through involvement in unconventional gas (shale gas, etc.) and small- and medium-scale LNG projects. We are also working to develop energy infrastructure and offer energy solutions in and around Southeast Asia and North America.