Participation in the 25th World Gas Conference in Kuala Lumpur The Japan Gas Association (JGA) will participate in the 25th World Gas Conference (WGC2012) to be held in Kuala Lumpur, Malaysia from June 4 (Mon.) to June 8 (Fri.), 2012. JGA Chairman Mitsunori Torihara is scheduled to give a keynote address on June 7 (Thu.) from 8:30 to 9:15 a.m. The JGA will also have a booth at the exhibition taking place in parallel with the conference. Among others, our booth will present panel displays on the smart energy network that the Japanese city gas industry is aiming to achieve as a middle- to long-term scenario, our approach to the hydrogen energy society and distributed energy systems including the natural gas cogeneration that provide the basis for these approaches, and appliances and systems for the advanced use of natural gas. JGA will broadly introduce Japan's city gas industry through the exhibition. The booth will also include a mockup of a PEFC (polymer electrolyte fuel cell) residential fuel cell. The exhibition will be in Hall 8 on the third floor of the Kuala Lumpur Convention Centre. Booth Image Exhibit Location (3rd floor, Hall 8) Japan's gas industry has been actively contributing to the International Gas Union (IGU) WOC (Working Committee) and PGC (Program Committee) activities throughout the Malaysian Triennium (2009-2012). Mr. Tatsuo Kume, Chairman of WOC5 In particular, WOC5 (Utilisation) is chaired by Mr. Tatsuo Kume, Executive Engineer, Energy Engineering Dept. of Osaka Gas, with Mr. Ichiro Baba, General Manager, Planning & Administration Team, Energy Resources and International Business Unit of Osaka Gas, serving as secretary. They have worked hard to gather research findings toward WGC2012 and actively supported information and other exchanges among the committee members. Following is a brief introduction of the WOC5 activities during the Malaysian Triennium and of the WOC5 committee sessions at WGC2012. WOC5 Focus: During the Malaysian triennium WOC5 has focused on describing the situation in different sectors of the gas industry such as the industrial, commercial, domestic and transport sectors by investigating and analyzing technological trends and significant advances of gas utilisation, sharing best practices in each sector in order to contribute to the advancement of the world gas industry. In addition studies on renewable energy and gas quality which are a common issue to all the sectors of the gas market were highlighted. The WOC5 sessions at WGC2012 will be as follows: These 5 committee sessions will be held in room 403/404 of KL Convention Centre Level 4. Interactive Expert Showcase of WOC5 is scheduled in hall 8 on June 7 (Thu.) from 16:00 to 17:30.

Fifth National Family Cooking Contest The WithGas Club∗ held the fifth "WithGas: National Family Cooking Contest - Sharpening the Five Senses by Cooking over a Flame" finals at the Tokyo Gas showroom in Shinjuku, Tokyo on Sunday, February 5. This fifth contest drew a record 20,837 families, far surpassing the 12,274 who participated in the previous event. At the finals, 14 parent-child duos who had won preliminary rounds in the nine regions of Japan competed for the honors. Along with the flavor and appearance of the cuisine, the National Family Cooking Contest emphasized ideal ways of preparing food using gas equipment as well as parent-child teamwork. The contest has become an opportunity for participants to learn about cooking and dietary education in a fun and casual manner. JGA strongly supports the National Family Cooking Contest as a contribution to society through dietary education activities, and as a campaign to widely promote housing equipped with gas to families. ∗The WithGas Club is a consortium founded by four industries involved with the living environment (housing manufacturers, kitchen/bath manufacturers, gas appliance manufactures, and LPG/city gas utilities) to propose better housing and lifestyles. JGA is a member. Project for the Promotion of Large Natural Gas Trucks The Japan Gas Association (JGA) commenced the Project for the Promotion of Large Natural Gas Trucks in December 2011. Under this project, three large (25 tons gross weight) natural gas trucks manufactured by JGA for testing purposes are being operated and monitored by transportation companies for about half a year each to (1) acquire data on CO2 reduction effects, environmental efficiency and economic efficiency, and (2) identify user-side operating problems. The various data and knowledge gained from the trial operations will be applied to improve the vehicles and to convey user needs to truck manufacturers, toward early mass production. There are presently around 40,000 natural gas vehicles in Japan (as of March 2011). The breakdown is 40% trucks, mostly between 2 and 4 tons, 30% garbage trucks, buses and small freight vans, and 30% subcompacts and passenger cars. There are only about 30 large natural gas trucks nationwide. Spreading next-generation vehicles has become an issue in the large truck sector (maximum load of more than 10 tons). JGA believes that the introduction and spread of large natural gas trucks is the most effective and practical solution for CO2 emissions reductions and as alternative fuel vehicles. In the distribution sector, which is highly dependent on petroleum, the diversification of fuels should be promoted from the perspective of energy security, and the further spread of natural gas vehicles is important. Following the Great East Japan Earthquake of March 2011, the tight supply-demand balance for gasoline, diesel and other fuels became a problem, while natural gas vehicle refueling stations were able to maintain a nearly normal supply system, demonstrating their superior security. JGA will further promote projects to spread natural gas vehicles, which run on natural gas - the cleanest petroleum alternative among all fossil fuels. This project is planned to continue through March 2014. City Gas Sales in December 2011 and for the Full Year 2011 (Jan.-Dec.) The total domestic gas sales in December 2011 (by 209 gas utilities in Japan) were 3,071 million m3 (41.8605 MJ/m3 equivalent), up 2.8% year-on-year. By sector: - Residential sector sales declined by 1.1% year-on-year, dropping for the second consecutive month even though the average temperature in December 2011 was lower than in the same month a year earlier. Hot water demand declined, partly because the average temperature in November 2011 was up from the previous year. - Commercial and other sector sales rose by 1.2% year-on-year. In the commercial sector, hot water and air conditioning demand both rose, as the average temperature in December was down from the previous year. In the other sectors (hospitals, public facilities, etc.), sales increased by 0.5% year-on-year. This was the first increase in commercial sector in 10 months and the first increase in the other sectors in nine months. - Industrial sector sales increased by 6.0% year-on-year, up for the first time in two months, as customer facility operations rose. By region: - The year-on-year changes in sales by region were as follows: Hokkaido +10.2%, Tohoku -1.5%, Kanto-Koshinetsu +5.6%, Chubu-Hokuriku +3.2%, Kinki -1.7%, Chugoku -0.7%, Shikoku -0.8%, and Kyushu-Okinawa -3.2%. The total domestic gas sales for the full year 2011 (Jan.-Dec.) were 35,108 million m3 (41.8605 MJ/m3 equivalent), down 0.3% year-on-year. By sector, residential sector sales declined by 0.3%, commercial sector sales dropped by 6.4%, industrial sector sales rose by 2.3%, and other sectors sales declined by 5.5%. By region, the year-on-year changes in sales by region were as follows: Hokkaido -1.5%, Tohoku -15.1%, Kanto-Koshinetsu -1.0%, Chubu-Hokuriku +0.3%, Kinki +1.6%, Chugoku +2.1%, Shikoku +4.5%, and Kyushu-Okinawa +0.9%. Gas Facts in Japan 2011

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