Tokyo Gas

Basic Information

Stock Code
9531
Industry
Electric Power and Gas Industry
Category Detail
Electric Power & Gas
Prefecture
Tokyo
Establishment Year
October 1885
Listing Year
May 1949
Official Website
https://www.tokyo-gas.co.jp/
TSE Information
TSE Information
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Other Companies
Ajinomoto, TOKAI Holdings, Kao, Otsuka Holdings, FUJIFILM Holdings, Mitsubishi Heavy Industries, Nippon Gas, Mitsui Fudosan, Mitsubishi Estate, Sumitomo Realty & Development, JR East, Osaka Gas, Toho Gas, Hokkaido Gas, Hiroshima Gas, Saibu Gas Holdings, Hokuriku Gas, Keiyo Gas, Shizuoka Gas

Overview

Tokyo Gas is Japan's largest city gas and electricity supplier, founded in 1885, deploying extensive gas production and sales along with energy solutions centered in the Kanto region.

Current Situation

Tokyo Gas recorded consolidated sales of approximately 3.29 trillion yen and operating profit of about 421.4 billion yen in 2023, maintaining solid performance. It supplies city gas to Tokyo and the six surrounding prefectures, establishing market dominance through a dense network of pipeline infrastructure. Its electricity retail business is expanding, securing over 1 million contracts in the new electricity sector. In recent years, it has focused on introducing clean energy centered on natural gas, strengthening the LNG value chain. Continuous investments in safety enhancements and innovation have led to successes in developing household fuel cells and low-carbon technologies. Through collaboration with subsidiaries and affiliates, it is advancing energy diversification to ensure sustainability and growth. It actively engages in environmental considerations and community contributions, implementing legal separation of its pipeline division in 2022. In the medium to long term, it plans to triple its power generation capacity, pursuing a strategy to become an energy leader in the decarbonization era.

Trivia

Interesting Facts

  • Tokyo Gas is Japan's largest and one of the world's leading city gas operators.
  • Leads the household fuel cell 'Ene-Farm' market.
  • Pioneered legal separation of pipeline division in Japan.
  • Owns multiple LNG import bases in Japan.
  • Comprehensive energy company providing diverse energy solutions.
  • Leads the industry in environmental initiatives and CO2 reduction technologies.
  • Tokyo Gas soccer club was a historic powerhouse team.
  • Company song is 'Sacred Flame', with original character 'Higuma Patcho'.
  • Deploys advertisements across diverse media including TV and radio.
  • Conducts comprehensive energy business with numerous subsidiaries.

Hidden Connections

  • Main sponsor of FC Tokyo and various sports teams, contributing to the community.
  • Collaborates with Iwatani Corporation through share transfer in LP gas business.
  • Jointly established solar power company with Sumitomo Mitsui Trust Bank, focusing on energy expansion.
  • Rotates Japan Gas Association presidency with other major gas companies.
  • Separated pipeline division as Tokyo Gas Network to comply with legal regulations.
  • Advanced safety measures for Paloma water heaters, working to restore social trust.
  • International LNG handler with multiple bases including Hitachi LNG Terminal, Negishi, and Sodegaura.
  • New electricity retail 'Zuttomo Electricity' is growing.

Future Outlook

Growth Drivers

  • Expansion of natural gas and renewable energy demand toward decarbonized society.
  • Growth in electricity retail market with progress in deregulation.
  • Market expansion through promotion of household fuel cells and energy-saving appliances.
  • Increasing demand for zero-emission energy solutions via environmental technologies.
  • Improved competitiveness through pipeline division efficiency and regulatory compliance.
  • Deepening of energy management business using IoT and DX.
  • Revenue diversification through strengthened B2B energy services.
  • Growth in biogas and synthetic methane business amid rising environmental awareness.
  • Further expansion of regionally integrated services.
  • Business synergy creation through strengthened collaboration within and outside the group.
  • Rational expansion of overseas energy business.
  • Promotion of sustainable real estate development.

Strategic Goals

  • Triple power generation capacity in the 2020s to achieve 5 million kW.
  • Significant CO2 emission reductions through sustainable energy services.
  • Expanded adoption of decarbonization fuels like biogas and synthetic methane.
  • Improved customer satisfaction via smart energy solutions.
  • Achieve highly transparent operations in compliance with legal separation plans.
  • Maintain and expand market share with stable city gas supply.
  • Aggressively advance renewable energy investments and portfolio expansion.
  • Strengthen environmental contributions and community support rooted in local society.
  • Expand customer base in electricity retail and develop differentiated products.
  • Revenue diversification through sustainable asset management and real estate development.

Business Segments

Corporate City Gas Supply

Overview
Provides safe and stable city gas and energy-related services to corporations and facilities.
Competitiveness
Extensive pipeline network and customer support system
Customers
  • Manufacturing
  • Restaurants
  • Commercial facilities
  • Hotels
  • Hospitals and nursing homes
  • Government offices
  • Logistics bases
  • Public facilities
Products
  • City gas supply
  • LNG supply
  • Energy management services
  • Cogeneration systems
  • Fuel cell systems
  • Gas appliance maintenance
  • Energy solutions

Gas Appliances and Equipment Sales and Maintenance

Overview
Ensures reliability through sales and maintenance of gas-related appliances.
Competitiveness
Safety quality management based on technical expertise
Customers
  • Gas retailers
  • Equipment contractors
  • Local governments
  • Factories
  • Building management companies
Products
  • Water heaters
  • Fuel cells
  • Gas stoves
  • Air conditioning equipment
  • Safety equipment

LNG Transportation and Storage Services

Overview
Supports domestic energy supply through stable LNG transportation and storage.
Competitiveness
Japan's largest-scale LNG base operations
Customers
  • Oil and gas wholesalers
  • Local gas operators
  • Factories
  • Power generators
Products
  • LNG tank trucks
  • LNG terminals
  • LNG ship operations

Electricity Retail and Power Generation

Overview
Deploys retail services and power generation in anticipation of electricity deregulation.
Competitiveness
Stable supply capacity through integration with gas-fired power
Customers
  • General households
  • Commercial facilities
  • Public facilities
  • Factories
Products
  • Electricity retail services
  • Natural gas-fired power generation
  • Renewable energy

Energy Management and Solutions

Overview
Provides services to improve and optimize customers' energy efficiency.
Competitiveness
Advanced digital technology and extensive implementation track record
Customers
  • Local governments
  • Corporations
  • Regional companies
  • Public facilities
Products
  • Energy-saving support
  • Energy supply-demand adjustment
  • IoT monitoring systems

District Chilled/Hot Water and Steam Supply

Overview
Provides efficient district heating and cooling thermal supply services.
Competitiveness
Environmentally considerate energy optimization technology
Customers
  • Building management companies
  • Commercial facilities
  • Public facilities
  • Factories
Products
  • Chilled/hot water supply
  • Steam supply
  • Energy services

Gas Appliance Leasing and Installment Sales

Overview
Leasing and sales services for appliances aimed at reducing customer burden.
Competitiveness
Flexible financing plans
Customers
  • General households
  • Corporate customers
  • Sales agents
Products
  • Gas stove leasing
  • Water heater installment sales
  • Fuel cell leasing

LNG and LP Gas Sales

Overview
Operates supply and sales networks for domestic and international LNG and LP gas.
Competitiveness
Stable procurement from diverse sources
Customers
  • Local gas operators
  • Factories
  • Logistics companies
Products
  • Liquefied natural gas
  • Liquefied petroleum gas

City Gas Wholesale Supply

Overview
Stably supplies gas to other companies without manufacturing facilities.
Competitiveness
Capital region's largest city gas production capacity
Customers
  • Local gas retailers
  • Regional companies
Products
  • City gas wholesale supply
  • Energy procurement support

Environment and Renewable Energy Business

Overview
Deploys diverse businesses aimed at reducing energy's environmental impact.
Competitiveness
Advanced environmental technology and wide-area network
Customers
  • Corporations
  • Local governments
  • General households
Products
  • Solar power generation
  • Biogas
  • CO2 emission reduction services

Real Estate Related Business

Overview
Advances land and building management and development as an energy company.
Competitiveness
Asset management capabilities and urban regeneration expertise
Customers
  • Tenants
  • Construction contractors
  • Investors
Products
  • Office building leasing
  • Redevelopment projects
  • Real estate management

IT and System Integration

Overview
Provides services from DX support for energy operations to general IT services.
Competitiveness
Advanced IT technology specialized in energy sector
Customers
  • Group companies
  • External customers
Products
  • System development
  • Infrastructure construction
  • Operation support

Competitive Advantage

Strengths

  • Japan's largest city gas production and sales network
  • Business strength spanning the entire LNG value chain
  • Technological development capabilities in household fuel cells and energy-saving appliances
  • Revenue diversification through electricity retail expansion
  • Strong customer base and brand recognition
  • Promotion of sustainable environmental technology and innovation
  • Abundant capital and stable financial foundation
  • Broad energy service provision capabilities
  • Regionally integrated sales organization
  • Strong collaboration with affiliates

Competitive Advantages

  • Powerful city gas supply network covering Tokyo and six prefectures
  • Comprehensive LNG import bases and safety management
  • Leading position in household energy appliance market
  • Energy sales strength in both electricity and gas
  • Early development of decarbonization and environmental technologies
  • Total energy services from the group
  • Rapid response capabilities such as pipeline separation in compliance with legal regulations
  • Specialized personnel focused on energy solutions
  • Trust and track record as a historic company
  • Stable customer relationships

Threats

  • Market fluctuation risks in LNG and crude oil prices
  • Pressure for business structure changes due to decarbonization policies
  • Intensifying market share competition in city gas from rivals
  • Competition with new entrants following electricity deregulation
  • Cost increases from strengthened environmental regulations
  • Impact of natural disasters on supply facilities
  • Reputation damage risks from gas accidents or safety issues
  • Concerns over long-term stable supply from overseas LNG asset sales
  • Risks of failing to keep pace with technological innovation speed
  • Demand contraction due to regional population decline

Innovations

2023: New solar power company established

Overview
Established a solar power business company on a scale of 200 locations nationwide in partnership with Sumitomo Mitsui Trust Bank.
Impact
Contributes to expansion in renewable energy sector

2022: Australia LNG assets sold

Overview
Sold four held LNG interests to a U.S. firm to secure funding.
Impact
Contributes to strengthening financial position and portfolio reorganization

2021: New household fuel cell 'Ene-Farm' developed

Overview
Launched new high-efficiency, energy-saving fuel cell product to the market.
Impact
Improves customer satisfaction and energy-saving promotion

2020: Biogas to city gas conversion begins

Overview
Began demonstration acceptance of biogas derived from food waste into city gas.
Impact
Promotes contribution to low-carbon society

2024: Methane synthesis facility with 15x CO2 capture capacity starts operations

Overview
Started operations of Japan's largest-scale CO2 capture technology-based synthetic methane demonstration plant.
Impact
Advances toward commercialization of carbon recycling

Sustainability

  • Contribution to low-carbon society using natural gas
  • Promotion of biogas integration into city gas
  • Strengthened technology development for CO2 emission reductions
  • Provision of integrated electricity and gas energy solutions
  • Environmental conservation activities in collaboration with local communities
  • Active investments in renewable energy business
  • Enhanced safety management and trust building
  • Improved transparency through legal separation of pipeline division
  • Diversification of customer services following electricity deregulation
  • Business efficiency and environmental impact reduction through DX promotion
  • Development of energy-saving technologies for gas appliances
  • Promotion of district heating and cooling systems