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The main business of the KNG Group is the gas business. The main strength of this business is the ability in optimizing resources development and adapting to changes in demand profile. This is achieved through the operations of our group companies, which cover all aspects of gas supply from upstream sectors such as the development and production of gas to downstream sectors such as the sale of gas to customers through city gas companies. Moreover, we are diversifying of the gas sources by focusing on natural gas produced in Chiba Prefecture that has abundant resources and is not affected by the international situations and exchange fluctuations, etc. and we are also constructing a system that will enable a long-term stable supply.
Outline of the Gas Business of the KNG Group
KNG and 3 consolidated subsidiaries (Otaki Gas Co., Ltd., Otaki Sangyo Co., Ltd. and Nihon Tennen Gas Co., Ltd.) are involved in this gas business which includes the production and the sale of natural gas, and the sale of city gas, compressed natural gas and LPG, etc.
KNG sells the gas extracted on its own and the gas purchased from other companies such as The Tokyo Electric Power Company, Inc., Nihon Tennen Gas and others chiefly for the city gas. Otaki Gas sells the gas purchased from KNG and other companies like Tokyo Electric Power and others as a city gas. Otaki Sangyo compresses and sells natural gas purchased from KNG while selling the LPG purchased from outside to KNG and others.
Nihon Tennen Gas sells natural gas extracted on its own to our company and others.
Diversification of Gas Sources and an optimal Mix for a Stable Supply
As a corporation group involved in the basic businesses supporting the industry and life in the region, the Group places importance on the stable supply of gas.
Therefore, in addition to domestically-produced natural gases, the Group is involved in diversification of gas sources and securing multiple suppliers of other gases such as LNG imported from overseas, BOG, which is a part of LNG and evaporates naturally in the LNG tanks, off-gas produced as a by-product in petrochemical plants, etc., and thereby establishing a structure that will ensure a stable supply through an optimal mix of gas sources.
Looking ahead, the Group will expand the sales by an optimal mix of various gas sources and aim at positive business development by focusing on natural gases which can be supplied stably for long terms.
Safest Security Systems
From the production of gas to its transport and distribution, KNG prioritizes safety. KNG maintains a comprehensive control system as well as ensuring rigorous safety measures and the use of proper equipment for each process.
From the wells to pipelines, KNG operates a 24-hour, 365-day supervision and control system that includes daily patrols. Demand for gas is highly variable, depending on seasonal and time factors such as the temperature on any given day. KNG's centralized control system can adjust the production and transport of gas to take account of these variations.
The gas pipeline network has a system of multiple pipes. Should a problem arise, it can be isolated by using valves to divert supply around the affected area. As a result, KNG's comprehensive control system can maintain a supply of gas without any disruption.
Moreover, for the city gas field also, where gas sales are to a large number of customers, we are making day-by-day efforts to ensure our customers'trust. Our systems in place enable ready response to emergency calls at anytime. In addition to an emergency information system in place and emergency vehicles ready, we also strive to ensure prevention and security through checking our customers'gas facilities and equipment during home visits and regularly conducting inspection and service of gas conduit pipes.
Increasing Demand from Home to the Industrial Field
In the home, the primary uses of natural gas are cooking, hot water and heat. In addition, the emergence of thermal energy storage systems has made it possible to combine water heating and room heating in a single appliance.
In the industrial and commercial markets moreover, which primarily represent large buildings and other facilities, heating and air-conditioning is performed not only directly by gas, but also by cogeneration systems, which use gas turbines and gas-fired engines to simultaneously generate electricity and power heating and cooling systems. Cogeneration has attracted much attention as a highly efficient energy utilization system and its use is spreading.
