Press Releases 2016

NIPPON GAS CO., LTD.
TEPCO Energy Partner, Incorporated

NIPPON GAS CO., LTD. (Head office: Shibuya-ku, Tokyo, Representative Director, President, Shinji Wada, hereinafter called “NICIGAS”) and TEPCO Energy Partner, Incorporated (Head office: Minato-ku, Tokyo, Representative Director, President: Tomoaki Kobayakawa, hereinafter called “TEPCO EP”) today concluded a Basic Agreement that NICIGAS and three NICIGAS group companies (TOSAI GAS, Inc., HIGASHINIHON GAS CORPORATION, and KITANIHON GAS Co. Ltd.) shall receive wholesale supply of entire quantity of city gas (13A) for sales (equivalent to approx. 0.24M tons/year LNG) from TEPCO EP from April 2017.

Based on this agreement, NICIGAS will aim at more convenient city gas supply to about 0.3M household customers. Also, it will make efforts to acquire new 0.11M household customers to choose city gas supplied from NICIGAS group companies in FY2017 after full deregulation of gas retail market.

Leveraging the largest LNG procurement (approx. 23M tons in FY2015) and gas pipelines in Tokyo Bay prepared by TEPCO group, TEPCO EP will continue to supply city gas stably. In addition, utilizing its technology and knowhow cultivated in electricity business, it will strive to provide new set menus or value added services so that its gas customers can experience many merits.

The two companies entered into an agreement of bundle sales of electricity and gas on October 5th, 2015 to survive severe competition in energy industry, and have been engaged in co-development of new value-added services.
In the future, with an eye on full deregulation of gas retail market, the two companies will conduct strategic alliance discussion for city gas sales and make effort to develop a new service combining their electricity and gas sales knowhow.