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Value Chain of the Daigas Group

Enhancement of CSR in Our Value Chain

City Gas Value Chain of the Daigas Group

The Daigas Group procures natural gas, which is an environmentally-friendly and stable energy source, from overseas suppliers, and provides gas to customers.

The Group secures the safety of customers and gives them peace of mind by procuring natural gas in a stable manner and building a solid security and accident-prevention system. By participating in the overseas upstream/downstream business, the Group has been expanding the scope of its business fields and enhancing further its natural gas value chain.

Procurement (drilling)

We have concluded long-term LNG procurement contracts with eight countries for the stable procurement of raw materials, under which we buy about 9,518,000 tons of LNG every year.

Transportation, production and supply

LNG is imported and received by us before being gasified (processed into city gas) at domestic processing terminals. City gas produced through these processes is supplied to around 5,996,000 customers, mainly those in the Kinki region, through gas pipes with a combined length of about 62,400 km. For city gas to be delivered to the customers safely and without worry, we are doing our utmost to take safety, security and disaster-prevention measures in each process of gas production.

Upstream businesses and downstream businesses

As for our upstream businesses, we will steadily implement 10 projects we have already participated in, including overseas gas development projects, while looking to participate in new projects. As for the downstream businesses, we will actively expand the scope of our business fields to cover, for example, energy projects in Southeast Asia, in addition to operating overseas LNG processing terminals and power plants.

Ensure a Stable Energy Supply by Diversified Power Sources

Possession of diverse power sources

The Daigas Group engages in the electricity generation business using various power sources it owns, including thermal power generation, gas cogeneration systems and renewable energy sources. The Group has a combined power-generation capacity of about 2.01 million kW in Japan, including a main power source at the Senboku Natural Gas Power Plant, a highly energy efficient thermal power plant. The Group will continue to develop new power sources to ensure stable electricity supply.

* Composition of electricity sources owned by Osaka Gas (based on a power generation plan covering the period between April 1, 2018 and March 31, 2019)
Osaka Gas supplies electricity by combining two major power sources. One is power generation mainly based on natural gas (fossil fuel), which is clean and weighs less on the environment. The other is electricity generated under the feed-in-tariff (FIT) program (solar power, biomass and wind power). The purchase by Osaka Gas of electricity generated by the “Ene-Farm type S,” a household-use solid oxide fuel cell (SOFC), is also included in the composition of power sources owned by Osaka Gas. Power from Ene-Farms accounts for less than 1% of the Company's total electricity sources.
*1 FIT program is partly financed by surcharges imposed on electricity users to promote the diffusion of renewable energy. The national average of CO2 emissions from all energy sources, including thermal power sources, is applied to the calculation of CO2 emissions from FIT electricity consumption.
*2 Electricity traded via this market includes hydrogen power, thermal power, nuclear power, FIT electricity and electricity generated from renewable energy sources.
  • The CO2 emission coefficient (after adjustment) of electricity generated by Osaka Gas for FY2019 is 0.404 kg-CO2/kWh (initial plan).

Power supply mechanism

The Daigas Group began supplying electricity to households and business operators such as restaurants and merchandise shops in April 2016 following full liberalization of the retail power market.

Osaka Gas provides electricity to its customers using power transmission and distribution networks operated by Kansai Electric Power Co., Inc. (KEPCO), which means that the service quality and reliability will remain the same as those provided by KEPCO. The Daigas Group has established a solid electricity supply system whereby power supply will not be suspended even if trouble occurs at power plants operated by the Group.

Flow of Electricity Supply

Flow of Electricity Supply

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