Customer Health and Safety (FY2020 Report)

Materiality Indicators

Management Approach

Why the topic is material

The Daigas Group puts the highest priority on securing safety of gas supply and facilities as an energy business operator which supplies city gas to 5.345 million customers. Therefore, we consider it important that we make efforts to enhance the safety level and formulate a structure to respond possible accidents and disasters.

Boundary

Inside of the Group

Management systems and performance

Indicator (GRI Standards: 416-1)

Percentage of city gas supplied by Osaka Gas that undergoes health and safety assessment

Commitment

Osaka Gas is committed to ensuring the safety of city gas, our primary product, its secure supply, and the safety of our gas facilities—all by adhering to our “Gas Supply Clause” and “Security Rules” according to the terms of the Gas Business Law.

(International and domestic standards)

• Gas Business Law

(In-house policy and standards)

• Daigas Group Code of Conduct
• Gas Supply Clause Security Rules

Responsibilities

The Daigas Group has established a system to ensure the safety of the city gas supply and gas appliances encompassing all facets of the Group’s city gas value chain — processing, supply, sales, and consumption. The Head of Safety and the individuals heading the safety operations of each business unit supervise safety and security matters concerning their respective business units and other business units.

In addition, the Executive Safety Council, comprising the Head of Safety; the individuals heading the safety operations of each business unit; and the chiefs of the relevant departments, convene safety and security meetings five times annually to plan safety initiatives and assess the achievements made in the relevant term. In line with the annual plan, each business unit systematically promotes initiatives to ensure security and improve safety.

■ Security and Safety Promotion Structure
Security and Safety Promotion Structure
Performance

In FY2020, all procedures were conducted based on guidelines in accordance with laws and regulations as well as in-house rules for processes such as quality control of gas in LNG terminals, safety inspection of gas pipelines and supply facilities, and safety inspection of gas appliances with customer consent.

Specific actions taken regarding materiality

To ensure our customers receive our energy services without worry, we are focused on maintaining the high quality of the city gas we supply while ensuring the stability of our gas supply and the safety of gas-processing and supply facilities.

■ Process of the Gas Business
Process of the Gas Business
Ensuring the quality and safety of city gas

Every day, the city gas plant monitors the quality of the city gas to ensure conformity with the standards set by Osaka Gas according to legal and regulatory requirements. The capacity of the gas holders and gas supply pressure are monitored and well managed in real time.

Inspection of gas pipelines

Gas supply facilities including gas pipes and pressure regulators are inspected to ensure their safety. The frequency and content of such inspections are set under in-house Security Rules.

Securing safety at customers' sites

Facilitate systems to response to reports and prepare resources for dispatching in case of accidents and disasters 24 hours a day, 365 days a year.

In accordance with laws, inspection of gas appliances for gas leaks, gas water heaters for air supply and exhaust function at customers' sites at least once every four years (at least once a year for some customers) were conducted. The visits to the customers were exploited as the opportunity for recommending installation of alarms for gas leaks for residential use and ventilation for commercial use, of which penetration rate were 50.1% and 98.5%, respectively. We are conducting replacement of old gas pipes with new ones that are resistant to earthquakes and corrosion. We are actively proposing the renewal of corrosion-prone old gas pipes by contacting affected customers. In FY2016, we implemented measures to deal with old gas pipes made of gray cast far ahead of the initial schedule of FY2021. We are continuing to take measures against old gas pipes made of gray cast iron (gas pipes requiring maintenance and management) and corrosion-prone gas pipes.

Disaster preparedness

After our experience with the Great Hanshin-Awaji Earthquake in 1995, we have implemented a variety of earthquake countermeasures, also adding new measures devised based on our experience with the 2018 Northern Osaka Prefecture Earthquake. Those efforts include the enhancement of safety measures in LNG manufacturing facilities, the replacement of old gas pipes with polyethylene (PE) pipes (approx. 16,700 km installed) that offer excellent durability and seismic resistance, and the installation of intelligent meters that detect earthquake vibrations and shut off the gas supply (approximately 99.9% of all meters and 100% of residential meters).

As an emergency measure, we are constructing a system for shutting off the gas supply to prevent secondary disasters. Automatic seismic detection/remote shutoff devices are being installed (now in approx. 3,000 and 3,600 locations, respectively) that automatically shut off the low-pressure gas supply in the supply area when a large earthquake is detected.

Since the March 2011 earthquake and tsunami that struck northeastern Japan, we have been redoubling our tsunami countermeasures. Standby generators installed at LNG terminals have been reinforced, the watertightness* of the structures housing equipment at the terminals has been improved, and some of the equipment has been moved to higher locations to avoid a tsunami. To prevent secondary damage and facilitate the early recovery of gas supply, one system being introduced is a damage-reduction block system that controls the gas supply of medium- and low-pressure gas pipes installed in coastal areas. In addition to these physical measures in the event of a tsunami, other steps are being taken, such as holding Company-wide Comprehensive Disaster Response Drills and providing emergency training. We expect these disaster-prevention efforts to establish a robust and resilient value chain in city gas service.

(Figures current as of March 31, 2020.)

  • * Watertightness
    Resistance to flooding from a tsunami
■ Security Measures Prepared for a Major Earthquake
Security Measures Prepared for a Major Earthquake Status of implementation (as of the end of March 2019)
(1) Reinforcement of an information collection function Installation of seismograph Installed in all areas (264 locations)
Introduction of an earthquake damage prediction system Introduced to the Central Control Room (Head Office / Sub-center) and all five districts
(2) Building of a supply shutoff system Subdivision of supply blocks Divided into medium-sized blocks (85) and small blocks (171)
Introduction of supply shutoff devices Remote shutoff devices: approx. 3,600 locations Automatic seismic shutdown systems: approx. 3,000 locations
(3) Others Efforts to diffuse polyethylene (PE) pipes Polyethylene (PE) pipes to be used for all new low-pressure pipelines, in principle
Total extended length of PE pipes: about 16,700 km
Diffusion of an intelligent meter that detects earthquake vibrations Completed installation for home use, with an overall penetration rate of 99.9% including business customers.
Backup of critical online systems Establishment of a backup center
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