Our Activities in 2011

1.Improving the three Es and supporting growth strategies by expanding the use of natural gas
(1) Specific efforts to accelerate a shift to natural gas to help build a low-carbon society and support the growth strategy
1) Activities in Japan and abroad to increase understanding about the advantages of natural gas
 We help the public and various sectors to appreciate the advantages of natural gas with its abundant supply including shale gas, utilization projects, the excellence of appliances, systems and technologies for using natural gas, as well as its effects on reducing CO2 emissions. To achieve this, we consult with administrators and experts, distribute information through the mass media, conduct the With Gas campaign with the help of associated industries, and hold seminars for the younger generation and those involved in education. Through such activities and networking initiatives, and with the commitment of all the JGA members, we are raising public understanding and gathering information.
 Debate continues concerning the bill on the Basic Act on Global Warming Countermeasures and the post-Kyoto framework, and we will continue to make industry-wide efforts under voluntary action plans to help Japan fulfill its commitment under the Kyoto Protocol. Moreover, in response to the Action Plan towards a Low-carbon Society, which was drawn up by the Japan Business Federation, we will prepare an action plan for the city gas industry for creating a low-carbon society by constructing mid- to long-term scenarios for energy conservation and lower CO2 emissions.
 We will strengthen our partnerships with energy and gas related agencies and organizations overseas to stay abreast of the latest news from globally influential organizations and institutions about international frameworks, and we will also ensure that the advantages of natural gas and natural gas utilization systems are properly appreciated. The JGA is a member of the International Gas Union (IGU) and the Gas Information Exchange in the Western Pacific Area (GASEX).
We will work to strengthen these international networks and use them for collecting and distributing information.

2) Implementing the gas industry’s growth strategy, which was revised in line with new trends in government policies on energy and the environment
   We will discuss with stakeholders and distribute information to help create smart energy networks including the greater use of distributed energy systems to strengthen energy security and prepare for the growth of the city gas industry by enhancing engineering skills and by providing comprehensive energy services.
3) Improving the supply security and preparing the infrastructure for creating a low-carbon society
- Expanding the full range of gas supply infrastructure, ranging from feedstock and production, to pipelines -
   To prepare the gas supply infrastructure required for accommodating a shift to natural gas, we will attend council meetings and distribute information, and help to solve economic, institutional and other issues.


(2)Promoting the use of natural gas by technological development and business creation
1) Initiatives to support the realization of the “Future Environmental City” concept
   We try to ensure that city gas utilities work toward the “Future Environmental City” concept included in the New Growth Strategy of the government, taking it as a new opportunity for expansion of the city gas business. We are therefore focusing on introducing distributed energy systems that will help strengthen energy security, by creating business models that extend beyond the conventional city gas business, such as combining renewable energy options with natural gas, and assisting the introduction of smart energy networks. We will also examine ways of.spreading such businesses to the regional gas utilities.

2) Supporting the creation of a hydrogen-based society
   Anticipating the domestic release of fuel cell vehicles in 2015, we will discuss the deployment of fuel cell vehicles through the amendment of regulations and improvement of infrastructure, to enable the practical use of hydrogen stations.
 Moreover, with a long-term vision of creating a hydrogen-based society, we will conduct technical studies for establishing technical guidelines concerning the distribution of hydrogen through pipelines under the gas utility law.
 Furthermore, to expand the use of residential fuel cell systems, we will try to reduce their costs, continue to improve ENE-FARM as a national brand of natural gas fuel cell system, and work to ease regulations on stationary fuel cells.


(3) Accelerating a shift to natural gas and promoting its advanced use
1) Promoting the use of natural gas as an alternative to other fossil fuels
   Using natural gas instead of other fossil fuels as a source of industrial heat is a quick and cost-efficient way of reducing CO2 emissions, and may also help Japanese firms become more competitive. To enable this shift, we are creating a program for improving our engineering skills and developing highly efficient systems such as regenerative burners that reduce CO2 emissions even further.

2) Promoting greater use of highly-efficient gas appliances and systems
   In addition to decarbonization, in order to address the emerging need for peak shaving of electricity demand in eastern Japan, we will promote the use of gas appliances and systems.
a. Fuel cell systems and highly efficient gas water heaters for residential use
  To encourage the installation of residential fuel cell systems (ENE-FARM) and highly efficient water heaters (Eco-Jozu and Eco-Will), we will conduct PR activities that emphasize their advantages.
 We also encourage the use of solar energy by introducing solar heat assisted gas water heating systems, for example. As a member of the Japan Gas Energy Promotion Council (COLLABO), we will continue to support the activities of the Solar Energy Utilization and Promotion Forum which promotes solar-assisted systems, and will help solve both policy and technological issues.
b. CHP and gas air conditioning systems
 We will continue to promote city gas CHP systems that play a crucial role in distributed energy networks, by reducing the cost to improve their economic efficiency. In addition, we will ensure that the reduction of CO2 emissions through energy saving by using natural gas CHP systems, etc. is properly accounted for in the design of various institutional arrangements.
 Gas heat pump (GHP) systems and other types of gas air conditioning systems will help shave the peak of electricity demand and overcome the present shortage of electric power in Japan. We will actively promote such gas air conditioning systems and pursue further progress by combining them with renewable energy (e.g. solar cooling) and collecting information from overseas.
c. Gas appliances in commercial kitchens
 We will promote the use of city gas fired commercial kitchen appliances through public relation campaigns that emphasize their superiority in cooking performance and economic efficiency, and the advantages of special design features to keep the kitchen comfortably cool, while improving the safety of these appliances.
d. Natural gas vehicles
 We expect the government to encourage the use of natural gas vehicles as a national policy not only for transportation within cities but also for intercity transportation. We have therefore conducted campaigns to encourage both consignees and transport companies to use natural gas vehicles, supported the technological development of large trucks fueled by natural gas, and tried to increase the number of natural gas filling stations.
 In promoting greater use of natural gas vehicles, we emphasize their advantages in terms of energy security, in the transportation area which is highly dependent on petroleum, as well as the environmental compatibility of natural gas.

3) Expanding the use of renewable energy
   We are promoting the advanced use of city gas in combination with renewable energy. Specific examples include the advanced use of biogas at its place of origin (from methane fermentation or from partial combustion) by CHP systems and the injection of biogas into city gas distribution lines.

4) Seeking the optimum energy mix for residential and commercial customers
   We will emphasize the important role of city gas in configuring the optimum energy mix as we try to strengthen our ties with customers mainly through the following activities.
a. Enhancing cross-industrial activities and strengthening partnerships
 For effectively proposing comfortable lifestyles with gas, and to help the industry contribute to the global environment and to energy security, we will continue to enhance our cross-industrial activities within the frameworks of the WITH GAS Club, the Japan Gas Energy Promotion Council (COLLABO) and KB&G COLLABO, for example, and strengthen partnerships with associated industries. We will also promote the With Gas campaign to the public and related industries.
b. Expanding the use of highly efficient and functional gas appliances
 We seek the de facto standardization of highly efficient gas water heaters that are aligned with the government’s energy and housing policies. As a COLLABO member, we support the activities of the Highly-Efficient Gas Water Heater De Facto Standard Study Group as it works to unify appliance names and coordinate efforts to solve technological challenges, preparing the right environment for the widespread use of highly-efficient gas water heaters. By 2013, we expect to achieve the target of ensuring that almost all newly installed gas water heaters are Eco-Jozu water heaters. Our additional activities include the standardization of highly efficient and functional appliances such as Si sensor cooking stoves. To deliver additional security, we will also develop and promote self-powered gas appliance systems that remain unaffected by power interruptions.
c. Supporting “food education”
 We actively support “food education” and contribute to society by organizing, through the WITH GAS Club, events like the National Family Cooking Contest and seminars, and by producing relevant tools. We will use these opportunities to show the public the merits of “cooking by flame” and the ease of cooking with Si sensor cooking stoves.

2. Strengthening the basis of city gas business                           
(1) Higher safety and security
1) Formulation of a new enhanced safety program and the industry’s action plan
   The new Gas Safety Enhancement Plan was announced in May this fiscal year. We will examine the contents and take appropriate measures according to the situation of the city gas industry.
 Accordingly, the industry will draw up an action plan for higher safety and ensure that it is implemented industrywide.
 Through the Study Group for the Development and Widespread Use of Advanced Safety Gas Appliances coordinated by COLLABO, we will strengthen measures to prevent serious accidents at home involving gas appliances and strive to improve the safety of commercial kitchen appliances. Furthermore, under the framework of COLLABO, we will work with LPG suppliers and community gas distribution service providers to coordinate countermeasures in case of disaster.

2) Strengthening security by supporting voluntary safety activities at gas utilities
   Mainly based on the “Campaign for Safety in Gas and Life,” we will continue public relations activities to enhance awareness of gas safety among customers.
In parallel, we will support voluntary safety activities at gas utilities by organizing seminars to raise their skills, by informing them of revisions of guidelines and manuals, and by attending to the qualification of personnel who work with gas pipes in customers’ premises, for example.

3) Reviewing reasonable design and maintenance of gas supply infrastructure and appliances
   Gas supply infrastructure and appliances are governed by laws, regulations and standards to protect public safety and ensure quality. However, these laws, regulations and standards may need to be updated in line with technological progress and social changes. We will therefore continue to request the government to review technical standards, and will also review voluntary inspection procedures and address regulatory issues.
 With regard to various initiatives to create international standards for LNG facilities, for example, we will work with related industries to ensure that the standards are reasonable for Japan and also that excellent technologies developed in Japan are referred to in preparing effective international standards.

4) Developing technologies to maintain and improve the high safety level
   Gas supply infrastructure and appliances are governed by many laws, regulations and standards to protect public safety and ensure quality. However, these laws, regulations and standards need to be updated to ensure they are reasonable in the light of technological progress and social changes. We will therefore continue to request the government to update technical standards, review voluntary inspection procedures and address regulatory issues.


(2)Strengthening protection against disasters including earthquakes
1) Protection against earthquakes, etc.
   We will review the ongoing programs for protection against earthquakes in the light of various new findings from the cause-of-damage analysis and disaster relief activities following the Great East Japan Earthquake in March 2011. We will identify and summarize future challenges regarding gas safety, stable supply and early recovery. Then, we will prepare, propose and implement reasonable countermeasures against disaster, jointly with the government and ensuring alignment with national policies on energy security, etc.

2) Protection against other hazards
   We will ensure that necessary measures are taken to enable us to continue supplying gas and to fulfill our obligation to
society during emergencies such as cyber attacks and highly-virulent flu epidemics.


(3)Appropriate responses to future institutional schemes for the gas industry
1) Actions concerning the anticipated reforms of institutional schemes for the gas industry
   In consideration of national policies on energy and the environment, which are likely to be reviewed to incorporate lessons from the earthquake, and also in consideration of discussions at the meetings of the Study Group on Desirable Gas Utility Business in a Low-carbon Society, we will properly address institutional reforms that may affect the gas industry such as further liberalization, the introduction of a scheme for consigned distribution, and changes in the institutional arrangements concerning gas prices.


(4) Support and cooperation among gas utilities for overcoming challenges
1) Strengthening corporate management and developing human resources
   We will help regional gas utilities develop core human resources by organizing management innovation seminars, for example.
 In addition, within the framework of our regional branch support program, we provide planning and financial support to each of our regional branches when they organize a unique seminar or study event that addresses regional issues.

2) Provision of technical information
   We plan to organize a City Gas Symposium (Tokyo, in June) and a City Gas Symposium Annex Events (Hachinohe in October) to provide the latest technical information (reports on technological development, etc.) and policy-related information to industry experts and other visitors, and to promote technological exchanges among city gas utilities, JGA associate members and other parties.
 - In addition, we will organize technology diffusion seminars to help regional gas utilities learn about new technologies and techniques for using natural gas as an alternative fuel, and to help make city gas more attractive than electric power.

3) Supporting compliance
   We will help member gas utilities to comply with laws by answering their questions on applicable laws and by disseminating information as required.

4) Promoting the creation of a recycling-type society, environmental conservation and eco-friendly managementl
   We will help gas utilities reduce environmental risks by complying with the revised Waste Management Law, etc., by creating and amending manuals.
 The 10th Conference of the Parties (COP10) to the Convention on Biological Diversity, which was held in Japan in October last year, emphasized the need for corporations to help preserve biological diversity, so we will make gas utilities more aware of the importance of appropriate action and environmental conservation. We will also help gas utilities introduce an environmental management system.

5) Support for advertising and public relationsl
   We will support advertising and public relations by continuing to sponsor TV programs on countrywide networks and by preparing advertising materials, With Gas campaign materials and other tools, which will also be supplied to regional gas utilities.
3. Other initiatives                                             
1) Steady progress in the project efficiency improvement program
   We are strengthening the screening and integration of projects in fiscal 2011, which marks the start of our project efficiency improvement program. Through this program, we review the configuration of committees and the secretariat for streamlining the organization, and implement reforms as required.
 We also plan to review the coordination and division of roles between the headquarters and regional branches, and to carry out reforms to make our administration more efficient and effective.

2) Rebuilding of the JGA Building
   We have decided to rebuild the JGA building because it had become old and there were earthquake concerns.
Dismantling of the old building has already started, and the new building will start to be built in this fiscal year. We will ensure that the construction project proceeds smoothly.





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