Tokyo Gas 2020 Vision and Our Challenge

Transcription

1 January 28th, 2015 Tokyo Gas 2020 Vision and Our Challenge Kunio NOHATA Executive Officer, Senior General Manager Gas Resources Department Tokyo Gas Co., Ltd.

2 Our Business Domain Our Business Domains Our business domain includes upstream development, LNG transportation by our LNG vessels, downstream business such as LNG regasification, pipeline transmission and distribution. Our Strength In order to deepen each domain, we have been conducting marketing to promote use of natural gas, establishment of safety and security system, and R&D. In other words, we have experience and expertise throughout the whole value chain of LNG. Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 2

3 Tokyo Gas Vision 2020 Promote the spread and expansion of Cogeneration(CHP) systems <Cogeneration systems Stock> Expand the electric power business (Natural Gas-fired thermal power generation) <Scale of the Power Generation Business > (Tens of thousands of kw) 2.5 times the current level 4.0 mil. kw (Tens of thousands kw) 1.5 to 2.5 times the current level 3.0 to 5.0 mil. kw mil. kw mil. kw

4 Tokyo Gas Vision 2020 [Gas Sales Volume by Application] 300 (Billion m³) (100 million m³ ) Fiscal 2012 Fiscal times the current level 22 bn m³ Residential Commercial bn m³ Industrial (general) Industrial (power generation) Wholesale Total Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 4

5 Tokyo Gas Vision 2020 As of 2011 Fiscal 2009 to 2011 Average By 2020 LNG Sales, Electric Power Business, Others 20% Overseas Business 10% Gas Business 70% Overseas Business 25% LNG Sales Power Other business 25% Gas Business 50% Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 5

6 IPP Projects in Japan We aim to raise the generation capacity of the electric power business from the current 2,000 MW to between 3,000 MW and 5,000 MW within the period of fiscal 2012 to fiscal 2020 in gross base. Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 6

7 Overseas Business Paris T-Power Project Cordova Shale Gas Project Barnett Shale Gas Project Cove Point LNG Project TGE Shanghai TG America (Houston) MT Falcon Power Project Bajio Power Project Kuala Lumpur TG Asia (Singapore) Ichthys LNG Project Pluto LNG Project Gorgon LNG Project Gas Malaysia Gas Malaysia-Energy Advance Darwin LNG Project Queensland Curtis LNG Project Malha Project Ecogen Project Representative Office TG Australia Local Subsidiary (Perth) Upstream Project Downstream Project 7 Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 7

8 Our challenge for LNG procurement Three diversifications TG targetting 1.Supply Source Asia Pacific, Mid-east, US, Canada, Africa, Russia Pipeline supplyalso being considered 2.Contract terms Introducing LNG market price linked mechanism Enlargement of liquidity by destination free term 3.Global LNG network Considering going into Atlantic ocean market and inter-market trade for global LNG market unitization Agreed upon HOA of Cove Point LNG, procuring LNG 1.4MTPA Procuring LNG from new region, new supplier (Supply source diversification) Henry Hub linked formula and destination free(contract terms diversification) Easing access to Atlantic ocean LNG market (LNG network diversification) Acquired 25% interests of Barnett shale gas project from Quicksilver Resources Inc. (equivalent to 0.35~0.5MTPA of LNG) Decentralizing our upstream investment in Asia Pacific region Allow hedging risks associated with HH price increase Agreed upon SPA of Cameron LNG with Mitsui & Co., procuring LNG 0.52 MTPA Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 8

9 New Dynamics of Gas Market in Asia -Diversifications & Asian HubsPipeline Gas Russian border price Khabarovsk Vladivostok North-East Hub Canadian Hub HH HH Destination free HH NBP Pipeline LNG Existing) LNG New Source South-East Hub Diversification of supply sources & system LNG & Pipeline Diversification of contracts Oil indexed gentle slope, S-curve, Henry-hub, NBP Long-term, Short-term, Spot Destination flexibility Copyright 2015 Tokyo Gas Co., Ltd, All Rights Reserved. Increase of market liquidity & Trading opportunity Emergence of Asian gas hubs; Singapore, Japan-Korea Trading & Arbitrage between Pacific & Atlantic markets Convergence to international gas market mechanism 1 9

10 LNG Terminal Negishi Terminal COD Oct Vaporizer Capacity 960t/h Storage Capacity 1.16 mil kl Sodegaura Terminal COD Oct Vaporizer Capacity 1,570t/h Storage Capacity 1.61 mil kl Negishi Terminal COD Oct Vaporizer Capacity 1,115t/h Storage Capacity 0.85 mil kl Under Construction Hitachi Terminal 10 Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved.

11 LNG Distribution LNG Tank Lorries Tokyo Gas is serving natural gas in the form of LNG by LNG tank lorries to the areas that do not have pipeline network. LNG is regasified at the customer site with LNG satellite including vaporizers which are provided by Tokyo Gas. Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 11

12 LNG Distribution - LNG Satellites LNG satellites can be constructed directly in each customer sites or some area close to multiple customers but no pipelines. If one LNG satellite can supply gas to multiple customers, it tends to be more costefficient than constructing the satellite directly in a customer s site. Pipeline LNG Truck Lorry Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 12

13 Gas Marketing Promotion of Natural Gas Tokyo Gas conducts Push Type promotion in order to acquire new customers even when headwind is blowing against LDC business. Push Type promotion includes the followings: - Proactive sales activity results high growth rate of sales - Information management on existing/potential customers - Strategic Expansion with extension of trunk line and LNG truck lorries - Standardized sales process increases sales efficiency - Collaboration with equipment providers and engineering companies - High technological capabilities e.g. fuel conversion, energy conservation Demand Survey Customer Visits Equipment Survey Price Negotiation Signing Fuel Switching Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 13

14 Gas Marketing Industry Coverage STEEL CAR AND OTHER MOTORS GLASS NON FERROUS HEAT TREATMENT DRYING AND EVAPORATING FOODS PAPER CHEMICAL Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. High Temp Cast Iron Melting Glass Melting Steel Heating Furnace Forging Furnace Sintering Furnace Heat Treatment Furnace Non Ferrous Melting Liquid Heating Deodorizing Furnace Galvanization Furnace Paint Drying Oven Boiler Evaporator Dryer Low Temp Liquid Heating 14

15 Gas Marketing Co-Generation System Against the backdrop of increased demand for energy security and business continuity plans, Tokyo Gas has been promoting sales of commercial and industrial cogeneration system, and our stock of these systems has reached 1.8GW. Commercial Use Steam Turbine 14MW Gas Turbine 218MW Fuel Cell 1MW Gas Engine 301MW Industrial Use Steam Turbine 495MW Fuel Cell 1MW Gas Turbine 397MW Gas Engine 460MW Total:534MW Total:1353MW As of end of 2013FY Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 15

16 Gas Marketing - Monitoring Service for Energy Conservation TG developed an energy monitoring service for: Measuring energy use of equipment automatically Labor-saving of measuring and making energy daily report Measuring how efficient energy is used in each equipment Find inefficient points and realize energy-saving Report Gas Flow Measurement Exhaust Gas(Monitoring Temperture,O2 ratio) Data sent Automatically Make Report Data Server Data sent Automatically Gas Flow Master Measurement Natural Gas Data sent Automatically Use of Report Understand specific energy consumption Comparison by month and by year Understand operation patterns Concern saving energy from analyzing exhaust gas loss 16 Copyright C 2015 Tokyo Gas Co., Ltd, All Rights Reserved. 16

17 Thank you for your kind attention. 17