Hokuriku Gas
Basic Information
- Stock Code
- 9537
- Industry
- Electricity and Gas Industry
- Category Detail
- Electric Power & Gas
- Prefecture
- Niigata Prefecture
- Establishment Year
- June 1913
- Listing Year
- March 2000
- Official Website
- https://www.hokurikugas.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- TOKAI Holdings, Kyoryo Information Communications, Morio Electric, Nippon Gas, Niigata Kotsu, Tokyo Gas, Osaka Gas, Toho Gas, Hokkaido Gas, Hiroshima Gas, Saibu Gas Holdings, Keiyo Gas, Shizuoka Gas
Overview
Hokuriku Gas is a city gas supply company founded in 1913 based in Niigata Prefecture, offering regionally focused energy services.
Current Situation
Hokuriku Gas recorded standalone sales of approximately 40.5 billion yen and consolidated sales of approximately 48.3 billion yen for the fiscal year ended March 2021, maintaining a stable revenue base. It supplies city gas to a wide range of areas in Niigata Prefecture, including Niigata City, Nagaoka City, and Kashiwazaki City, serving as indispensable energy infrastructure for the local community. In addition to manufacturing and supplying city gas using natural gas as raw material, it also operates gas appliance sales and construction businesses. In recent years, it has expanded operations by acquiring municipal gas businesses from surrounding municipalities and establishing joint venture companies. Responding to heightened environmental awareness, it focuses on clean energy supply, including the introduction of liquefied natural gas (LNG). It also works to enhance customer convenience through smartphone payment options. In the medium to long term, its strategy emphasizes stable growth leveraging regional strengths, along with investments in energy-saving technologies and reduced environmental impact.
Trivia
Interesting Facts
- Historic city gas company founded in 1913
- Grown through acquisitions of numerous municipal gas businesses in Niigata Prefecture
- First president was prominent entrepreneur Momosuke Fukuzawa
- Plays key role in regional gas infrastructure development
- Improved customer convenience with smartphone payments
- Stably procures LNG from domestic and international sources
- Expands gas-related businesses through multiple subsidiaries
- High recognition as major energy supplier in Niigata Prefecture
- Established operating company for Myoko City gas and water in 2021
- Multiple branches and offices across Niigata Prefecture
Hidden Connections
- Atsui Industry is a major shareholder with group intra-transactions
- Collaborates with JFE Engineering and INPEX on new ventures
- Expanding business successions amid retirements of regional municipal gas operators
- Strong ties with local related companies like Niigata Hume Pipe
- Contributes to regional digitalization through smartphone payment introduction
- Supports regional industries with factory in Niigata Port East Port District
- First president Momosuke Fukuzawa was a key business figure
- Regionally rooted energy company supporting resident lifestyles
Future Outlook
Growth Drivers
- Market expansion through increased municipal gas business acquisitions in Niigata Prefecture
- Rising demand for environmentally friendly energy
- Promotion of smart energy management system adoption
- Strengthened collaboration with renewables
- Development of digital services to enhance customer convenience
- Increased equipment investment needs from aging infrastructure renewal
- Regional revitalization support via local government partnerships
- Expansion of high-value-added services for industrial customers
- Stable LNG procurement and maintained price competitiveness
Strategic Goals
- Expansion of supply areas and strengthening of customer base
- Building clean and efficient gas supply systems
- Service innovation using digital technology
- Establishment of sustainable corporate structure coexisting with local communities
- Advancement of environmental load reduction and energy-saving technologies
- Enhanced safety measures and disaster response capabilities
- Comprehensive energy services through group collaboration
- Improved customer satisfaction via smart payment proliferation
- Ongoing contributions to regional economy and job creation
- Ensuring medium- to long-term financial soundness and stable growth
Business Segments
Energy Supply for Commercial Facilities and Stores
- Overview
- Provides stable energy supply and energy-saving support for commercial facilities and stores.
- Competitiveness
- Rapid regional response and strong equipment proposal capabilities
- Customers
-
- Restaurants
- Retail Stores
- Hotels
- Office Buildings
- Hospitals
- Products
-
- City Gas Supply
- Energy-Saving Proposals
- Gas Equipment Installation
Factory and Industrial Gas Supply Services
- Overview
- Provides safe and efficient city gas supply and equipment maintenance for factories.
- Competitiveness
- Extensive technical experience and regional infrastructure collaboration
- Customers
-
- Manufacturing Plants
- Food Processing
- Chemical Plants
- Paper Manufacturing
- Metal Processing
- Products
-
- Industrial City Gas Supply
- Gas Insulation Equipment
- Energy Management
Construction and Works Segment
- Overview
- Offers integrated services from design and construction to maintenance of gas equipment.
- Competitiveness
- Regionally focused construction and maintenance systems
- Customers
-
- Construction Companies
- Public Project Entities
- Real Estate Management Companies
- Products
-
- Gas Piping Works
- Equipment Installation Works
- Maintenance and Inspection Services
Subsidiary and Related Business Support
- Overview
- Comprehensive energy service support through subsidiaries.
- Competitiveness
- Efficiency through group synergies
- Customers
-
- Hokuriku Natural Gas Development
- Kambara Gas
- Hokuei Construction
- Products
-
- LNG Procurement
- Piping Equipment
- Regional Business
Competitive Advantage
Strengths
- Stable customer base with deep regional ties
- Supply network covering all of Niigata Prefecture
- Stable procurement system for natural gas and LNG
- Comprehensive gas appliance sales and maintenance
- Diverse payment methods and customer convenience
- Ongoing strengthening through municipal gas business acquisitions
- Robust community contribution activities
- Solid financial base and stable profit margins
- Strong relationships with local governments
- Supply area population exceeding 100,000
- Customer satisfaction via smart payments
- High credibility from long history
- Business diversification through consolidated subsidiaries
- Efficient energy management technology
- Trusted as local community lifeline infrastructure
Competitive Advantages
- Dominant market share in exclusive supply areas in Niigata Prefecture
- Stable supply ensured by mixed procurement of natural gas and LNG
- Advancing regional expansion via municipal gas business succession
- Wide-ranging gas appliance sales and services
- Comprehensive network with branches and offices in multiple regions
- Advanced customer services like smartphone payments
- Deep local government ties for regulatory understanding
- Business expansion and diversification using consolidated subsidiaries
- Enhanced proposals via customer usage data
- Regionally rooted quality, safety management, and responsiveness
- Ongoing equipment investments for infrastructure reliability
- Integrated capabilities from piping works to maintenance
- Stable operations through local hiring and talent development
- Strategic advancement in eco-friendly gas supply
- LNG procurement channels leveraging regional resources
Threats
- Declining population impacting city gas demand
- Intensifying competition from renewables and electricity
- Cost pressures from rising fuel prices
- Business environment risks from regulatory changes
- Supply disruption risks from disasters
- Emergence of regional competitors or new entrants
- Shifting customer demographics due to aging
- Declining demand for gas appliances from electrification
- Global environmental regulations affecting fuel procurement
- Risks from financial fluctuations of municipal acquisition targets
- Competitive decline from delayed tech adaptation
- Profit squeezes from intensified price competition
Innovations
2021: Establishment of Myoko Green Energy
- Overview
- Established a joint venture with JFE Engineering and INPEX to manage gas and water supply business in Myoko City.
- Impact
- Contributes to efficiency in regional gas business and new venture development.
2020: Acquisition of Mitsuke City Municipal Gas Business
- Overview
- Acquired the municipal gas business in Mitsuke City, Niigata Prefecture, expanding the supply area.
- Impact
- Successfully expanded market share in the region.
2022: Enhanced Smartphone Payment Introduction
- Overview
- Supported smart payment services such as LINE Pay, FamilyMart Pay, and Rakuten Bank convenience store payments.
- Impact
- Achieved improved customer convenience and simplified payment processes.
2023: Strengthened LNG Introduction
- Overview
- Successfully diversified fuel procurement risks by establishing multiple domestic and international LNG supply routes.
- Impact
- Improved stability of energy supply.
2024: Smart Energy Management System Development
- Overview
- Developed and promoted energy management systems for customer facilities.
- Impact
- Realized energy-saving support and demand optimization.
Sustainability
- Promotion of clean energy supply using LNG and natural gas
- Advancement of energy-saving diagnostics and efficiency support
- Implementation of environmental awareness activities for local communities
- Pipeline facility longevity and safety enhancements
- Exploration and promotion of renewable energy collaborations