Recent rapid increases in the demand for city gas in manufacturing industries and future developments

City gas companies in Japan are experiencing an expansion in demand for gas in all manufacturing industries. The reason for this is, first and foremost, external, in that the first and second oil crises and the recent Gulf War have placed the oil market in a state of flux. That is to say, supply and demand in the oil products market is unstable while the stability of city gas, which is the main raw material for LNG, is being highly appraised. Another external reason is related to a subject much in the news recently the world over - the environment. City gas is highly regarded for its minimum environmental impact. Domestic reasons for the expansion include the fact that with the increase in use of city gas in manufacturing industries, the end user is beginning to recognize the various special qualities that city gas possesses. The expansion is also due in part to the unrelenting efforts in sales by the gas producers themselves. This report focuses on the expansion in demand in city gas over the past ten years from the point of view of Tokyo Gas as a producer that has been party to the increased sales of city gas in manufacturing industries for over 10 years giving views on the reasons for the increase. Graphic reports of the actual situation of the industry at meetings such as these are rare and therefore although this is slightly different from the main theme, I would like to proceed with the debate in the hope that this will be beneficial in the expansion of future gas demand in countries all over the world