HIROSHIMA GAS : CSR Report 2022

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Hiroshima Gas

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CSR Report

2022

Digest

Creating a sustainable society

with our hands...

Flow of delivering natural gas to our customers

City gas supply flowchart

Raw material procurement	City gas production
and transport

Natural gas is extracted overseas, cooled to approximately -160ºC, liquefied, and then imported as LNG (liquefied natural gas).

Bintulu facilities in Malaysia

[Natural gas extraction] [LNG transport ship]

LNG is placed into storage tanks and vaporized according to demand. It then undergoes calorific value adjustment and is supplied as city gas.

Hatsukaichi LNG terminal

[In-pitmethod [LNG vaporizer] LNG storage tank]

Supply area and organization

			(As of March 31, 2022)
Supply area (7 cities and 4 towns within Hiroshima prefecture)	Number of customers
Hiroshima, Kure, Onomichi, Mihara, Hatsukaichi, Higashi-hiroshima, Fukuyama,	416,000
Aki-gunKaita-cho /Saka-cho /Fuchu-cho /Kumano-cho
Hiroshima district
Number of customers
353,000

Kabe facilities

Higashi-hiroshima plant

Kabe facilities

	Head office				Kaita facilities
					Kaita facilities
							Higashi-hiroshima plant
Head office	Hatsukaichi LNG terminal				Kumano facilities

Kure district

Number of customers	Kure branch
46,000
Kure branch			Kumano facilities

Hatsukaichi LNG terminal

Hiroshima Gas makes sure its energy supply system is stable and secure	Hiroshima Gas CSR Report 2022
Digest
so that all of its customers can always use natural gas in a safe manner.

City gas supply

Gas is supplied to customers through 5,252km of underground piping (supply and service pipelines).

Delivery to customers

The gas that we supply can be used in a variety of applications.

Gas pipe bridges

Factories, etc.

Hotels, buildings, schools, etc.

Kitchens,

hot water supply, etc.

[Gas holder]

[Industrial use]

[Commercial use]

[Residential use]

Natural gas is an
environmentally friendly
type of energy!		Wholesale
		supply
		(Hiroshima Gas)
		Wholesale supply
		utilizing equipment from
	LNG tanker trucks	Setouchi Pipeline Co.,	Mizushima station	Mizushima LNG terminal
	Ltd., a consolidated
	(Setouchi Pipeline Co., Ltd.)	(Mizushima LNG Co., Ltd.)
		subsidiary

Okayama

Hiroshima prefecture

prefecture

Mizushima station Mizushima LNG terminal

Bingo plant

Fukuyama Gas Co., Ltd.

Bingo plant

Onomichi branch

Onomichi/Mihara

district

Number of customers

17,000

Onomichi branch

Energy plays an important part in every part of our lives.

		Legend
Supply area				Gas holder
(Hiroshima district)
				Gas production plant
Supply area
(Kure district)				Head office/Branch/
Supply area				Facilities
(Onomichi/Mihara				Proposed pipeline
district)
Pipeline				Pipeline
(Hiroshima Gas)				(Setouchi Pipeline)

Hiroshima Gas Group 2030 Vision

Slogan for Hiroshima Gas Group 2030 Vision

Basic Policies for 2030 Vision

Three Basic Values Our Slogan Represents

• The Hiroshima Gas Group grows with the community

• Energy that truly benefits communities

• To pursue inspiration and send moving messages that we can share with the entire community

1 Pursuit of inspiration through our operational policies	2 Pursuit of inspiration through our energy service
3 Pursuit of inspiration through peace of mind	4 Pursuit of inspiration through connection with others

Declaration of the Sustainable Development Goals set by Hiroshima Gas Group for the benefit of communities

Declaration of the Sustainable Development Goals set by Hiroshima Gas Group for the benefit of communities: Taking action to create a brighter future

Based on our management philosophy of "striving to be a company trusted by the community", Hiroshima Gas Group seeks to implement viable corporate governance and work toward the Sustainable Development Goals proposed by the United Nations in order to contribute to building a sustainable society under the

company slogan of "energy that truly benefits communities".

October 30, 2020 Hiroshima Gas Group

Poster for "Declaration of the Sustainable Development Goals set by Hiroshima Gas Group for the benefit of communities"

Efforts by Hiroshima Gas Group to achieve carbon neutrality by 2050

• Efforts by Hiroshima Gas Group to achieve carbon neutrality by 2050
  1 Until 2030, we will steadily promote the reduction of CO2 emissions in our business activities and at our customers' sites, focusing on the various ESG-related project efforts we have implemented thus far to reduce our environmental impact.

• In the future, we will engage in the "decarbonization of the gas itself" through the use of methanation and hydrogen, as well as decarbonization of power sources, aiming for carbon neutrality by 2050.

■ Targets for FY2030

Contribution to CO2 emission reductions	300,000 tons/year*1
Volume of renewable energy power	60,000 kW*2
sources handled
CO2 emissions at Hiroshima Gas offices	50% decrease from FY2013*3
and production plants

*1: Contribution to CO2 emission reductions by Hiroshima Gas and its customer sites as of FY2030 (from FY2021)

*2: Includes power sources applicable for a feed-in tariff (FIT) such as solar power, wind power, and biomass.

*3: Included in contribution to CO2 emission reductions of 300,000 tons/year

• Roadmap to carbon neutrality by 2050

	2030	2050
Carbon reduction	Shifting to natural gas and LP gas (Fuel shift from oil and coal)
and decarbonization
at customer sites	Efficiently using natural gas and LP gas	by expanding the use of CGS, fuel cells, etc.
Gas	Investigating potential for next-generation energy
Decarbonization of
(Methanation / hydrogen)	Introducing and expanding
the gas itself
(Utilizing CO2 credits)	carbon neutral methane

neutrality

Envi-Electricity ronment

Carbon reduction

and decarbonization

at customer sites

Decarbonization of

power sources

Forest

conservation

Procuring and supplying electric power from

the electric power market

Supplying green electric power

Securing renewable energy power sources and the post-FIT electric power

(Constructing virtual power stations)

Thermal power source (Electric power market)

Making renewable energy power sources

the main power sources in the electric power market

Conserving forests and creating CO2 credits

Carbon

Management	Reforming and strengthening the business base for the safe
	and stable supply of natural gas and improved corporate value

Company performance information

First increase in revenue in two years and third consecutive year of increase in ordinary profit. Sixth consecutive year of increase in the number of customers.

Consolidated net sales		Consolidated profit			Gas sales volume and number of customers [Non-consolidated]
(Millions of yen)	■ Ordinary profit	(Millions of yen)	■ Gas sales volume (1,000 m3)
		■ Profit attributable to owners of the parent			● Number of customers (Individual customer locations)

73,717	81,842	82,268		76,802
		73,250
2017	2018	2019	2020	2021

(Fiscal Year)

			5,272
				4,616
3,506		3,454	3,467	3,662
2,499	2,509	2,153
	1,971
2017	2018	2019	2020	2021

(Fiscal Year)

	583,010	596,226	569,917	566,223
519,137
			415,500	416,788
		414,396
411,080	412,574
2017	2018	2019	2020	2021

(Fiscal Year)

Business activities

LNG procurement and production

In order to respond to fluctuations in	demand for
LNG (liquefied natural gas), the raw	material for city
gas, we are striving to diversify our suppliers and
ensure stable procurement.
City gas is produced at the Hatsukaichi LNG
terminal, the Bingo plant, and the Higashi-hiroshima
plant. LNG reception and the entire gas production
process at these locations are tightly controlled via
the central control room.	LNG ship docking at our Hatsukaichi LNG terminal	Central control room

Supply and distribution plants

We are promoting the construction of new gas pipelines and systematic maintenance and management.

In addition, we have established a system to ensure the stable delivery of city gas, including a 24-hour response and dispatch system for emergency situations.

Security command center

Business

City gas is used for a variety of purposes, including residential, commercial, and industrial use, and we are proposing ways to expand and efficiently use natural gas.

We also conduct inspections and public awareness activities to ensure safe and secure gas use.

Emergency vehicles

A comprehensive system has been put into place to ensure that gas is used in a safe and secure manner.

City gas proposals to customers

Safety inspection of gas equipment

Gas Safety Guidebook