Hokkaido Gas
Basic Information
- Stock Code
- 9534
- Industry
- Electric Power and Gas Industry
- Category Detail
- Electric Power & Gas
- Prefecture
- Hokkaido
- Establishment Year
- July 1911
- Listing Year
- May 1949
- Official Website
- https://www.hokkaido-gas.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- TOKAI Holdings, Nichigas, Hokkaido Electric Power, Tokyo Gas, Osaka Gas, Toho Gas, Hiroshima Gas, Saibu Gas HD, Hokuriku Gas, Keiyo Gas, Shizuoka Gas
Overview
Hokkaido Gas is a mid-sized energy company founded in 1911, primarily based in Hokkaido, engaged in city gas supply and electricity services.
Current Situation
Hokkaido Gas recorded net sales of 126.3 billion yen and net assets of 50.4 billion yen for the fiscal year ended March 2020, serving approximately 550,000 city gas customers in Hokkaido. It has entered the electricity business and is focusing on utilizing renewable energy sources such as the Ishikari Power Plant. It completed the nationwide pioneering transition to natural gas, establishing a stable supply system. In recent years, it has been advancing urban gas cogeneration and LNG supply facilities to aim for energy savings and reduced environmental impact. It has established a new head office building in Sapporo City to promote operational efficiency and environmental considerations. Emphasizing coexistence with local communities, it focuses on region-specific services and fulfilling corporate social responsibilities. It differentiates itself from competitors and is advancing growth strategies as a core company in Hokkaido's energy infrastructure.
Trivia
Interesting Facts
- First company in Hokkaido to complete full transition to natural gas.
- Entered electricity retail business in 2016 and is expanding.
- Installed cogeneration equipment in the basement of the new head office building.
- Historic company continuously listed on the Sapporo Securities Exchange since 1950.
- As a locally rooted company, covers nearly all of Hokkaido as its supply area.
- Owns LNG receiving bases in Hakodate and Ishikari for stable supply foundation.
- Actively engages in community contribution activities, including cultural and sports support.
- Develops services specialized for Hokkaido's cold climate demands.
- Recently focusing on environmental management through renewable energy.
- Has advanced operational improvements based on lessons from past safety management incidents.
Hidden Connections
- Tokyo Gas is one of the major shareholders with capital and business ties.
- Pioneer in proposing new renewable energy introductions among regionally rooted companies.
- Integrated Muroran Gas into the group to expand coverage in Hokkaido.
- Long-term sponsorship of Hokkaido Nippon-Ham Fighters and Hokkaido Consadole Sapporo.
- Among regional gas companies, entered electricity sales early and built a growth sector.
- Acquired energy businesses from multiple Hokkaido municipalities to expand regional supply share.
- Utilizes own LNG bases and Sapporo-Tarumi main pipeline for LNG transportation.
- Deepening collaboration with residential equipment manufacturers for environmentally considerate city gas supply.
Future Outlook
Growth Drivers
- Stable increase in energy demand in Hokkaido
- New product development through expanded renewable energy introduction
- Tailwinds from diversified sales channels due to electricity liberalization
- Expansion of service deployment through popularization of energy-saving appliances and smart technologies
- Demand for decarbonization responses leveraging rising regional environmental awareness
- Stable supply-demand from LNG and gas infrastructure development
- Promotion of high-efficiency equipment introduction due to strengthened environmental regulations
- Operational efficiency through digital transformation
- Enhanced safe and convenient services for aging society
- Joint business development through strengthened collaboration with regional companies and municipalities
- Creation of new technology investments and next-generation energy-related businesses
- Strengthened compliance support services for laws like the Energy Conservation Law
Strategic Goals
- Maintain and expand city gas supply share in the region
- Achieve over 30% renewable energy ratio in electricity sales
- Realize over 20% CO2 emission reductions across all operations
- Further strengthen safety management for continued zero accidents
- Full deployment of digital services for customers
- Promote adoption of next-generation high-efficiency gas supply technologies
- Establish community-coexistent business model and strengthen regional economic contributions
- Build diverse lineup of energy products and services
- Business innovation through technology and know-how sharing within the group
- Improve trust from local communities and enhance brand value
Business Segments
Commercial Gas Supply
- Overview
- Provides stable gas and heat supply to industries and commercial sectors.
- Competitiveness
- Regionally integrated supply network and technical expertise
- Customers
-
- Factories
- Commercial Facilities
- Restaurants
- Public Facilities
- Building Management Companies
- Products
-
- Large-volume City Gas Supply
- High-pressure Gas Supply
- Heat Supply Services
Heat Supply Business
- Overview
- Energy-saving support through efficient heat supply.
- Competitiveness
- Energy-saving effects from cogeneration equipment
- Customers
-
- Apartment Management Associations
- Schools
- Hospitals
- Large Apartment Complexes
- Products
-
- Central Heating
- Hot Water Services
- Thermal Energy Management
Electricity Retail Business
- Overview
- Electricity sales and environmentally responsive energy provision in Hokkaido.
- Competitiveness
- Integration of LNG power generation and renewable energy
- Customers
-
- Corporations
- Public Institutions
- Commercial Facilities
- Products
-
- Electricity Sales
- Renewable Energy Provision
Competitive Advantage
Strengths
- Regionally integrated stable city gas supply system
- Abundant LNG receiving and storage facilities
- Active entry into electricity sales business
- Diverse heat supply services
- Long-standing regional brand and trust
- Corporate structure focused on safety management
- Adaptation to Hokkaido-specific energy demands
- Deployment of diverse sales channels
- Strong customer base and high contract renewal rate
- Promotion of environmentally considerate businesses
- Ownership of efficient cogeneration facilities
- Adaptability to government energy policies
- Service supplementation through diversified subsidiaries
- Employees with specialized skills and extensive experience
- Strong relationships with local communities
Competitive Advantages
- Exclusive nature of wide city gas supply area in Hokkaido
- Superior environmental response from full transition to natural gas
- Comprehensive infrastructure of LNG bases and pipelines
- Differentiation from regional competitors in electricity retail
- Diverse heat supply services tailored to regional characteristics
- Stable profitability from high customer trust and long-term contracts
- Strong supply track record to public facilities and large housing
- Overall strength from synergies with group companies
- Thorough introduction of advanced safety devices and accident measures
- Responsive system to local energy demands
- Close collaboration with local companies and municipalities
- Proactive investment stance in renewable energy introduction
- Efficient customer service and rapid response capabilities
- Deep understanding and proposal capabilities for diverse BtoB industries
- Continuous investment in new businesses and technologies for innovation
Threats
- Impacts from changes in domestic energy policies
- Decrease in city gas demand due to increased renewable energy
- Rising volatility in energy prices
- Market shrinkage risk from population decline
- Safety risks such as gas leaks and potential credit damage
- Intensifying competition from electricity liberalization
- Concerns over abnormal weather and demand fluctuations from climate change
- Increasing maintenance and renewal costs from aging supply infrastructure
- Instability in LNG procurement prices due to international situations
- Potential market share loss to new entrants
- Competitive decline from delayed response to technological innovations
- Rising operational costs from strengthened regulations
Innovations
2024: Expansion of Renewable Energy Introduction
- Overview
- Strengthened environmentally friendly power generation with the start of operations at the Ishikari wind power facility.
- Impact
- Contributes to CO2 emission reductions and diversification of electricity supply
2023: Introduction of Smart Meters for City Gas
- Overview
- Implemented efficient consumption management using IoT-enabled smart meters.
- Impact
- Improved meter reading efficiency and customer convenience
2022: Strengthening of LNG Supply Base
- Overview
- Enhanced supply capacity through equipment renewal at Hakodate Minato Factory.
- Impact
- Established stable LNG supply foundation
2021: Expansion of Electricity Sales Services
- Overview
- Expanded 'Hokugas Electricity' service across all of Hokkaido.
- Impact
- Increased sales customers and revenue diversification
2020: Introduction of Cogeneration Equipment
- Overview
- Installed natural gas power generation and waste heat utilization equipment in the basement of the new head office building.
- Impact
- Promoted energy savings and reduced environmental impact
Sustainability
- Utilization of renewable energy through Ishikari wind power generation
- CO2 reductions during combustion by promoting LNG use
- Strengthened safety management for city gas and accident prevention
- Promotion of energy-saving cogeneration equipment
- Active participation in local environmental conservation activities
- Development and application of high-efficiency heat supply systems
- Efficient demand management using smart meters
- Establishment of sustainable gas supply systems
- CSR activities aimed at coexistence with local communities
- Advancement of research and development on low-environmental-impact technologies