Osaka Gas

Basic Information

Stock Code
9532
Industry
Electric Power and Gas Industry
Category Detail
Electric Power & Gas
Prefecture
Osaka Prefecture
Establishment Year
April 1897
Listing Year
May 1949
Official Website
https://www.osakagas.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
TOKAI Holdings, Nichigas, Chubu Electric Power, Kansai Electric Power, Tokyo Gas, Toho Gas, Hokkaido Gas, Hiroshima Gas, Saibu Gas Holdings, Hokuriku Gas, Keiyo Gas, Shizuoka Gas

Overview

Osaka Gas, founded in 1897, primarily supplies city gas and electricity in the Kinki region and is a major industry leader advancing technological innovation and overseas investment.

Current Situation

Osaka Gas recorded consolidated sales of approximately 1.5868 trillion yen, operating income of 94.9 billion yen, and net income of 128.2 billion yen for the fiscal year ended March 2022, boasting a stable financial base. It holds the second-largest city gas sales volume nationwide in the domestic market, with a total pipeline length of about 63,100 km, solidifying its position as a primary energy supplier in the Kansai region. It also conducts electricity business, operating approximately 3.01 million kW of generation facilities domestically and overseas. Emphasizing technology development, it promotes energy-saving gas appliances and advanced fuel cell systems (Ene-Farm). It actively pursues sustainability initiatives, including the start of biogas intake and synthetic methane demonstration experiments to reduce environmental impact. Overseas, it focuses on LNG bases and thermal power generation projects in Southeast Asia and the United States, with a strategy to expand overseas profits to 30% of the total by fiscal 2030. Collaborating with local communities on social contribution activities, it aims for sustainable growth using renewable energy and technological innovation as key growth drivers.

Trivia

Interesting Facts

  • Large-scale operator with the No. 2 city gas sales volume nationwide
  • Owns one of Japan's largest natural gas thermal power plants
  • Core company of the former Nomura Zaibatsu with significant influence in business circles
  • Headquarters building is a registered cultural property of prewar modernist architecture
  • Pioneered district heating/cooling services in Japan
  • Entered telecommunications business to promote diversification
  • Pioneering efforts in synthetic methane environmental technology development
  • Central company of the Daigas Group with numerous affiliates
  • Implements disaster area support as social contribution to local communities
  • Large corporation with approximately 20,000 employees
  • Excels in gas safety supply technology during power outages
  • Monument installed at former founding site, now Osaka Dome construction location
  • Strength in gas appliance sales and installation
  • Participates in shale gas sector for overseas business
  • Listed on TSE Prime since initial listing

Hidden Connections

  • Resona Bank Midosuji Branch occupies the first floor of the headquarters building
  • Competes with Kansai Electric Power in the electricity retail market
  • Collaborates with major trading houses like Marubeni and Itochu for overseas expansion
  • Competes with Tokyo Gas and Toho Gas as major city gas industry players
  • Jointly established numerous local governments and regional new power companies
  • Member of multiple local business groups including Daiwa-kai and Sansui-kai
  • Has produced multiple chairmen of the Osaka Chamber of Commerce and Industry
  • Sponsor of local media such as TV Osaka and MBS TV

Future Outlook

Growth Drivers

  • Increased demand from renewable energy expansion
  • Energy business growth in overseas markets
  • Promotion of energy-saving technologies and smart energy
  • Customer base strengthening through new telecom services
  • Demand for technological responses to stricter environmental regulations
  • Deepening of community-based services
  • Business efficiency improvement through digitalization
  • Growing decarbonization needs from fuel switching
  • Expansion of residential fuel cell market
  • Enhanced competitiveness through group synergies
  • New service development via IoT and AI technologies
  • Growth from regional new power market expansion

Strategic Goals

  • Achieve 30% profit ratio from overseas business
  • Expand technologies toward carbon neutrality
  • Commercialize synthetic methane business
  • Expand market share in electricity retail business
  • Strengthen nationwide deployment of regional heat supply services
  • Significantly increase renewable energy ratio
  • Build smart energy systems
  • Promote sustainable real estate development
  • Strengthen coexistence with local communities
  • Improve customer satisfaction and brand strength

Business Segments

City Gas Wholesale

Overview
Stably supplies city gas and LNG to regional gas operators and public organizations.
Competitiveness
Ownership of extensive network and large-scale pipeline infrastructure
Customers
  • Local Gas Operators
  • Public Organizations
  • Industrial Customers
Products
  • City Gas
  • LNG
  • Gas Pipeline Services

Electricity Wholesale and Retail

Overview
Provides electricity from domestic and overseas power plants via wholesale and retail.
Competitiveness
Stable generation facilities and customer base
Customers
  • Kansai Electric Power
  • Chubu Electric Power
  • Municipalities
  • Corporations
Products
  • Generated Electricity
  • Retail Electricity Contracts

Gas Appliance Sales and Installation

Overview
Supports comfortable living by providing diverse gas appliances and related installation.
Competitiveness
Technological expertise and large-scale service network
Customers
  • Home Builders
  • Carpentry Shops
  • Equipment Contractors
  • Commercial Facilities
Products
  • Gas Stoves
  • Water Heaters
  • Air Conditioning Equipment
  • Installation Work

Real Estate Development and Management

Overview
Creates stable revenue through urban real estate development and home renovations.
Competitiveness
Group's broad asset utilization capabilities
Customers
  • Real Estate Owners
  • Tenant Companies
  • Home Buyers
Products
  • Residential Renovation
  • Mixed-Use Facility Development
  • Asset Management

Overseas Energy Business

Overview
Actively invests in energy projects in Southeast Asia and the U.S. to drive growth.
Competitiveness
Strong local networks and technical support
Customers
  • Overseas Partner Companies
  • Government Agencies
Products
  • LNG Bases
  • Thermal Power Generation
  • Shale Gas

Renewable Energy

Overview
Focuses on environmentally friendly technologies for a low-carbon society.
Competitiveness
Introduction and demonstration of advanced environmental technologies
Customers
  • Local Governments
  • Industry Associations
Products
  • Biogas
  • Synthetic Methane
  • Wind Power Generation

Telecommunications Services

Overview
Entered telecom services, offering plans integrated with energy.
Competitiveness
Multi-faceted energy proposals and infrastructure integration
Customers
  • Households
  • Corporations
Products
  • Fiber Optic Services
  • ISP Services

Regional Heat Supply and Heating/Cooling

Overview
Implements energy-efficient regional heat supply business contributing to the environment.
Competitiveness
Technological expertise and multi-location service deployment
Customers
  • Large Facilities
  • Housing Complexes
  • Public Facilities
Products
  • Regional Heat Supply
  • Heating/Cooling Services

LP Gas Filling and Delivery

Overview
Backs up safe and secure LP gas supply.
Competitiveness
Trusted distribution network and equipment management
Customers
  • Residential
  • Commercial Facilities
Products
  • LP Gas Cylinders
  • Delivery Services

Industrial Gas Supply

Overview
Supplies diverse industrial gases needed at industrial sites.
Competitiveness
Quality control and customization capabilities
Customers
  • Manufacturing
  • Medical Institutions
  • Research Institutions
Products
  • High-Purity Gas
  • Specialty Gas Plants

Maintenance and Inspection Services

Overview
Handles safety maintenance and servicing of appliances.
Competitiveness
Nationwide network and specialized technology
Customers
  • Gas Operators
  • General Consumers
Products
  • Appliance Inspections
  • Safety Checks
  • Repair Services

Environmentally Friendly Energy

Overview
Promotes environmental measures toward a sustainable society.
Competitiveness
Diverse technology introductions and demonstration experiments
Customers
  • Corporations
  • Municipalities
  • Residents
Products
  • Environmental Impact Reduction Programs
  • Carbon Neutral Technologies

Competitive Advantage

Strengths

  • No. 2 industry position in city gas supply capacity
  • Development of energy-saving appliances through technological innovation
  • Extensive gas pipeline infrastructure network
  • Active energy investments overseas
  • Diversified energy business portfolio
  • Stable financial foundation
  • Strong regional collaboration network
  • Diverse business portfolio
  • Long years of industry experience and know-how
  • Strong commitment to sustainability
  • Ownership of advanced generation facilities
  • High brand recognition
  • Comprehensive customer service system
  • Synergies with group companies
  • Introduction and demonstration of environmental technologies

Competitive Advantages

  • Ownership of wide-area and efficient gas supply network
  • Early investments in synthetic methane and biogas businesses
  • Development and promotion of residential fuel cell systems
  • Participation in overseas natural gas and thermal power projects
  • Risk diversification through diverse energy businesses
  • Regional heating/cooling and other community-based heat supply services
  • Improved safety and energy efficiency through proprietary technologies
  • New service development integrating IT and telecom services
  • Strong customer base and long-term contracts
  • Introduction of cutting-edge technologies to reduce environmental impact
  • Diverse sales channels and service shops
  • Integrated system from gas appliance development to maintenance
  • Strengthened collaboration with government and municipalities
  • Building of international business networks
  • Solid management structure and transparent governance

Threats

  • Intensified competition due to energy market liberalization
  • Decline in gas demand from spread of renewables
  • Political and regulatory risks in overseas operations
  • Profit pressure from fuel price fluctuations
  • Burden of compliance with stricter environmental regulations
  • Decline in competitiveness from lagging technological innovation
  • Infrastructure damage risk during disasters
  • Diversification of customer energy choices
  • Challenges in talent acquisition and development
  • Increasing cybersecurity risks
  • Market opening pressure from regional monopolies
  • Uncertainty in global energy supply and demand

Innovations

2023: Start of Synthetic Methane Demonstration Facility Operation

Overview
Started operation of synthetic methane demonstration facility enhancing CO2 recovery capacity 15-fold.
Impact
Contributes to greenhouse gas emission reductions

2023: Lifestyle Verification in Compact Housing

Overview
Began lifestyle experiments in small homes utilizing energy-saving technologies.
Impact
Successfully proposed new lifestyle models

2022: Enhanced Response to Full Electricity Retail Liberalization

Overview
Actively entered residential and small business electricity supply, expanding customer base.
Impact
Significant increase in new contracts

2021: Spin-Off of Pipeline Division Due to Legal Separation

Overview
Separated pipeline division into 100% subsidiary in compliance with regulations.
Impact
Strengthened compliance

2020: Full Entry into Renovation Business

Overview
Acquired shares in Global Base to expand renovation business in Tokyo metropolitan area.
Impact
Successfully diversified revenue sources

2024: Expansion of e-Methane Test Facility

Overview
Expanded demonstration base for e-methane business using renewable energy.
Impact
Acquired knowledge for commercialization

2023: Launch of SasuGa Net Telecom Service

Overview
Partnered with NTT West Japan etc. to newly enter ISP business.
Impact
Promotes fusion of energy and telecommunications

2022: Expansion of Biogas Intake

Overview
Began accepting biogas applications with quality assurance conditions.
Impact
Contributes to environmental impact reduction

2020: Promotion of Energy-Saving Cogeneration Introduction

Overview
Promoted adoption of energy-saving power generation systems to reduce environmental impact.
Impact
CO2 emission reduction effects

2024: Advancement of Fuel Cell Technology Practicalization

Overview
Developed next-generation fuel cell cogeneration technology.
Impact
Contributes to energy-saving and low-carbon society

Sustainability

  • Promotion of demonstration operations for biogas and synthetic methane
  • Active introduction of CO2 emission reduction technologies
  • Energy-saving promotion through regional heat supply services
  • Expansion of renewable energy business
  • Commitment to environmental conservation and community coexistence
  • Equipment upgrades for safety improvements
  • Sustainable real estate development
  • Promotion of energy-saving appliance adoption
  • Visualization and disclosure of environmental impact
  • Introduction of carbon neutral technologies
  • Enhanced social contribution and regional support activities
  • Enriched internal environmental education