HIROSHIMA GAS : CSR Report 2023

Hiroshima Gas

CSR Report

Corporate Social Responsibility Report

2023

Digest

Creating a sustainable society with our hands...

Flow of delivering natural gas to our customers

City gas supply owchart
Raw material procurement	City gas production
and transport

Natural gas is extracted overseas, cooled to approximately -160ºC, liqueed, and then imported as LNG (liqueed 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 caloric value adjustment and is supplied as city gas.

Hatsukaichi LNG terminal

[LNG storage tank]

[LNG vaporizer]

Supply area and organization

					(As of March 31, 2023)
Supply area (7 cities and 4 towns within Hiroshima prefecture)
Number of customers
Hiroshima, Kure, Onomichi, Mihara, Hatsukaichi, Higashi-hiroshima, Fukuyama,	417,000
Aki-gunKaita-cho /Saka-cho /Fuchu-cho /Kumano-cho
Hiroshima district
Number of customers
355,000
Kabe facilities		Higashi-hiroshima plant

Kabe facilities

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

Kumano facilities

Kure district
Number of customers
Kure branch
45,000
Kure branch

Hatsukaichi LNG terminal

Hiroshima Gas makes sure its energy supply system is stable and secure	Hiroshima Gas CSR Report 2023
so that all of its customers can always use natural gas in a safe manner.	Digest

City gas supply

Delivery to customers

Gas is supplied to customers through 5,277 km of underground piping (supply and service pipelines).

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., Ltd., a consolidated subsidiary

Mizushima station	Mizushima LNG terminal
(Setouchi Pipeline Co., Ltd.)	(Mizushima LNG Co., Ltd.)

HiroshimaOkayama

prefectureprefecture

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 ofce/Branch/
Supply area				Facilities
(Onomichi/Mihara				Proposed pipeline
district)
Pipeline				Pipeline
(Hiroshima Gas)				(Setouchi Pipeline)

October 30, 2020 Hiroshima Gas Group

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
  ❷ Energy that truly benefits communities
  ❸ To pursue inspiration and send moving messages that we can share with the entire community

• Pursuit of inspiration through our operational policies 2 Pursuit of inspiration through our energy service

• 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 benet of communities

Declaration of the Sustainable Development Goals set by Hiroshima Gas Group for the benet 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 benets communities".

Poster for "Declaration of the Sustainable

Development Goals set by Hiroshima Gas

Group for the benet 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

2

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 ofces	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

and decarbonization

at customer sites

Gas

Decarbonization of

the gas itself

Carbon reduction

and decarbonization

at customer sites

Electricity

Decarbonization of

power sources

Shifting to natural gas and LP gas (Fuel shift from oil and coal)

Efciently using natural gas and LP gas by expanding the use of CGS, fuel cells, etc.

Investigating potential for next-generation energy	Introducing and expanding
(Methanation / hydrogen)
(Utilizing CO2 credits)	e-methane*

Procuring and supplying electric power from

the electric power market

Supplying green electric power

Securing renewable energy power sources and electric power after the purchase

period under the FIT scheme expires (Constructing virtual power stations)

Thermal power source (Electric power market) Making renewable energy power sources

the main power sources in the electric power market

Carbon neutrality

Environ-	Forest	Conserving forests and creating CO2	credits
ment	conservation

* Methane synthesized from decarbonized hydrogen and CO2

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

Company performance information

Second consecutive year of increase in revenue and fourth consecutive year of increase in ordinary prot. Seventh consecutive year of increase in the number of customers.

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

				95,219
81,842	82,268		76,802
		73,250
2018	2019	2020	2021	2022

(Fiscal Year)

				7,412
		5,272	4,616	5,216
	3,454	3,467	3,662
2,509	2,153
1,971
2018	2019	2020	2021	2022

(Fiscal Year)

583,010	596,226	569,917	566,223
				500,225
		415,500	416,788	417,252
	414,396
412,574
2018	2019	2020	2021	2022

(Fiscal Year)

Business activities

LNG procurement and production

In order to provide a stable supply of city gas, we
are striving to diversify our suppliers and ensure
stable procurement of LNG (liqueed natural gas),
the raw material for city gas.
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 efciently 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