City Gas Value Chain of the Daigas Group
The Daigas Group procures natural gas, which is a stable and environment-friendly energy source, from suppliers outside Japan, and provides the gas to customers.
The Group underpins the safety and peace of mind of customers by procuring natural gas in a stable manner and building a solid security and accident-prevention system. At the same time, the Group has been expanding the scope of its business and enhancing its city gas value chain.
We have concluded long-term LNG procurement contracts with nine countries for the stable procurement of raw materials, under which we buy about 8,478,000 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 5,345,000 customers, mainly those in the Kansai region, through gas pipes with a combined length of about 63,000 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.
International Energy Business
In our international business, we take part in gas field development and seek out opportunities to participate in new projects in other countries. We are also actively expanding the scope of our business, including expanding our international LNG bases and our energy business in Southeast Asia.
Electricity Value Chain of the Daigas Group
Diversity in Power Sources
Osaka Gas is focused mainly on thermal power generation using natural gas, which is a clean energy source with a low environmental impact, in combination with FIT-based generation using photovoltaic, biomass, and wind energy sources. Subsequently, the Daigas Group aims to develop additional power sources while continuing to provide a stable supply of power.
■ Composition of electricity sources (in kWh) owned by Osaka Gas (based on a power generation plan spanning April 1, 2020, to March 31, 2021)
The Company offers a fee plan for certified non-fossil power sources in combination with FIT-based power sources that reduce CO2 emissions to a practical rate of zero and a second fee schedule for surplus power generated by the Ene-Farm type S household fuel cell. The diagram at left shows the power supply configuration for the fee plans that do not specify power 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 emissions intensity (after adjustment) of electricity generated by Osaka Gas for FY2021 is 0.393 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. The Group provides electricity to its customers, using power transmission and distribution networks operated by Kansai Transmission and Distribution, Inc. or other companies, which means that the service quality and reliability will remain the same as before. The Daigas Group has established a solid electricity supply system whereby power supply will not be suspended even if problems occur at power plants operated by the Group.
■Flow of Electricity Supply
A representative from the general power distributor (such as Kansai Transmission and Distribution, Inc.) visits customers’ residences every four years to inspect household electrical equipment.