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|Toho Gas Plans to Sell 3.9 billion CBM of Gas for FY 2013|
|=Strives to sell 5 billion CBM by FY 2022|
Toho Gas Co., Ltd. recently released its business plan for fiscal year 2013 to sell 3.9 billion cubic meters of gas, which is estimated to increase by 11 million cubic meters (0.3%) from FY 2012. Although its sales for residential use are expected to drop by 1.8% to 741 million cubic meters and those for wholesales to other gas companies are to go down 3.9% to 280 million cubic meters from a year earlier, Toho Gas will steadily raise its sales for professional use by 1.3% to 2.88 billion cubic meters from a year ago, which is expected to boost its sales in FY 2013 as a whole.|
However, its estimated sales volume for FY 2013 slightly falls below the target level of 4 billion cubic meters for the same year, which is shown on the medium-term management plan for FY 2009-2013 developed by Toho Gas in March 2009. Slowdown in housing starts and anticipated sluggish gas demand in FY 2013 has caused the sales volume recently estimated for the year to decrease from the target sales planned in 2009.
Toho Gas developed "Toho Gas Group Vision" in which it sets a goal and shows its approaches to realize the target toward FY 2022 when its 100th anniversary is commemorated. In an effort to lower energy cost over the coming ten years, Toho Gas will take every possible means to procure feedstocks and at the same time, will establish a system to receive these feedstocks flexibly and efficiently. Meanwhile, the company intends to extend existing gas pipelines so that it could increase its sales of gas by 100 million cubic meters per year and its sales would reach 5 billion cubic meters in FY 2022.
Toho Gas plans to consume 2,998,000 MT of LNG in FY 2013, which almost remains unchanged from the previous fiscal year. Also, it posted its capital-investment spending of 32.9 billion Yen for the same year. Completing Gas Pipeline Project across Ise Bay, an arm of the Pacific Ocean on the central coast of Honshu, Japan, Toho Gas will proceed with construction of underground LNG storage tank in Chita Midorihama Factory and installation of trunk pipeline in Mie prefecture. By improving these facilities to receive and supply LNG, it is anticipated that the company will be able to be ready to receive 4 million tons per year of LNG by FY 2022.
In the meantime, Toho Gas will diversify feedstock supply sources and actively work on its procurement from new LNG projects such as the ones in the United States and African countries.
Toho Gas will introduce several benchmarks for the price formation of natural gas such as National Balancing Point (NBP), UK's gas benchmark, and North American benchmark Henry Hub through its procurements from these new sources, and enhance its bargaining capability to the sellers as well as increase stability in its procurement.
|last modified : Tue 09 Apr, 2013 [13:59]|