Events in Japan Role of LP Gas Industry

Makoto Arahata

Japan LP Gas Association

WLPGA GLOTEC21 June 2011, Bucharest

Information and Communication with the area and business

The earthquake and the tsunami 11th March 2011

1

LP Gas terminals

The four import terminals were damaged by the earthquake and the tsunami. The terminals and the secondary terminals became un-operational.

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As of 10th June 2011Import terminals

①Aomori terminal

(Normal)

②Sendai Gas Terminal

(Filling and receiving facilities damaged)

③Kashima Oil LP Gas Terminal

(Partly resumed)

④Kashima LPG Joint terminal

(Normal)

Secondary terminals

⑤Hachinohe Terminal(Normal)

⑥Iwate Oil Gas Terminal(Heavily damaged)

⑦Shiogama LPG Terminal(Partly resumed)

⑧Onahama LPG Terminal(Partly resumed)

⑨Akita Terminal(Normal)

⑩Ichikawa Terminal(Normal)

⑪Cosmo oil Chiba terminal（Operation was stopped)

■ Operational Import Terminals■ Operation is suspended● Operational secondary terminals● Operation is suspended

Suffered terminalsImport terminals

①Aomori terminal

(no electricity)

②Sendai Gas Terminal

(Filling and receiving facilities damaged)

③Kashima Oil LP Gas Terminal

(Jetty was damaged)

④Kashima LPG Joint terminal

(Access waterway was blocked)

Secondary terminals

⑤Hachinohe Terminal(Operation was stopped)

⑥Iwate Oil Gas Terminal(Heavily damaged)

⑦Shiogama LPG Terminal(Operation was suspended)

⑧Onahama LPG Terminal(Operation was suspended)

⑨Akita Terminal(No electricity)

⑩Ichikawa Terminal(Operation was suspended)

⑪Cosmo oil Chiba terminal（Operation was stopped)

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Damage: LP Gas Distributers & Retailers and Consumers

Number of Consumers

Number of Suffered Consumers

23rd March

Number of Restored Consumes

21st April

Aomori & Iwate pref. 930 50 30

Miyagi pref. 580 120 90

Fukushima pref. 630 50 20

Ibaragi & Chiba pref. 1,900 0 0

Total 4,040 220 140

Number of RetailersNumber of Filling

PantsNumber of AutogasDispensing stations

Total

Suffered

retailers

(23rd March)

Total

Damaged Filling

Plants

(23rd March)

Total

Damaged

Dispensing

stations

(23rd March)

Aomori & Iwate pref.

962 8 103 11 53 5

Miyagi pref. 680 7 52 19 36 11

Fukushima pref.

819 48 65 10 40 6

Ibaragi & Chiba pref.

2,174 2 168 2 108 2

Total 4,635 65 388 42 237 24

Consumers (unit: 1,000)

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LP Gas retailers & distributers, filling plants and dispensing sites

Tension-triggered valve for preventing gas leaks

LP Gas Supply Chain was damaged

Lost LP Gas cylinders in debris LP Gas filling plant

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Lost LP Gas tank truckAutogas dispensing station

Secretariat

Chairman

Managing Director

Planning Committee

Supply Committee

TechnicalCommittee

Member companies

Emergency Headquarters

Emergency Headquarters at the Japan LP Gas Association

Headquarters Deputy Director (Administrative)

Headquarters Deputy Director

(Technical)

Headquarters Deputy Director

(Supply)

Secretariat JLPGA Staves

5

Normal time Emergency time

Headquarters Director

Cooperation Agreement was made for easing risks of the importers caused by short

of LP Gas supply on assumption of emergency in 2005.

The decision was made to take action according to the agreement

15th March 2011

Image of Cooperation

Terminal A : un-functional

Terminal B Terminal C

Terminal D

Terminal A

Around 14:46 on 11th

March 2011

Cooperation Agreement among the membersof the Japan LP Gas Association

The functional terminals open for the terminal A

The LP Gas inventory throughout Japan turned to be a joint inventory among the Japanese LP Gas importers

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National Stock-pile of LP Gas rescued – short of supply

Kashima LP Gas Terminal: Import terminal with the capacity of 225,000ton jointly operated by

Japanese LP Gas importers (Iwatani, Shell and Cosmo). The waterway to the terminal was blocked by a cargo ship of 91,000mt

grounded by the tsunami. So, the inventory of the terminal became low.

Sendai Gas Terminal: One of the LP Gas main import terminals to supply LP Gas in Northern

Japan was suffered by the earthquake and the tsunami. The operation was forced to stop.

The capacity of tanks are 195,000ton in total.

To compensate for the loss of supply from Sendai Gas Terminal to Northern Japan, demand on other terminals including Kashima LP Gas Terminal increased.

Kamisu LP Gas National Stock-pile Terminal opened its valves to send LP Gas to adjoining Kashima LP Gas Terminal.

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Nanao National LP Gas Stock-pile Terminal(250,000ton)

Kamisu National LP Gas Stock-pile Terminal(200,000ton)

Namikata National LP Gas Stock-pile Terminal (450,000ton)Under construction

Fukushima National LP Gas Stock-pile Terminal (200,000ton)

National Stock-pile of LP Gas

Kurashiki National LP Gas Stock-pile Terminal (400,000ton)Under construction

National LP Gas Stock-pile terminals exist adjoining LP Gas import terminals as Kamisu.

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Above ground Type (650,000Ton)

Under ground cavern Type (850,000Ton)★

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location of National LP Gas Stock-pile terminals

LP Gas : Reliable source of energy in emergency

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LP Gas cylinders at meal center LP Gas cylinders asrelief supply to evacuees

Bulk tank for evacueesLP Gas for the city gas users by W.I adjusting system

LP Gas cylinders at temporary housing

LP Gas: Reliable fuel for transportation

Autogas is reliable.

Supply of LP Gas was restored quickly.

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Action taken by LP Gas industry

The distributers and the retailers cooperated with each other to use jointly the operational filling plant and fulfilled their duties to keep their customers safe, etc.

LP Gas supply chain was suffered by the earthquake and the tsunami –• LP Gas import terminals• LP Gas secondary terminals • LP Gas cylinder filling plants• Autogas dispensing stations • LP Gas tank trucks• LP Gas cylinders• LP Gas supply equipments at user (valves, regulators, gas meters)

Action to restore LP Gas supply chain –• Taken action according to Cooperation Agreement• Opened National LP Gas stock-pile terminal• Sent LP Gas cylinders full of propane, portable cook stoves and tank trucks full of LP Gas

• Sent staves to help the suffered distributers and retailers• Others

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Distributed Source of Energy

It is reaffirmed that – LP Gas is unique energy.

Emergency electric generators at LP Gas terminals (now capacity is very limited) More LP Gas vehicles (bi-fuel type) for LP Gas distributers and retailers (short of

diesel and gasoline supply) Introduction of LP Gas tank trucks fuelled by Autogas LP Gas supply equipments (The equipment manufacture factories were suffered) And more

Challenges:

Autogas (bi-fuel type) Distributed electric generator fuelled by LP Gas Micro-CHP GHP (Gas Heat Pump) LP Gas hybrid applications with renewable energy LP Gas bulk system for the dedicated evacuation centers LP Gas for all electrified houses

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Thank you for your attention

Makoto Arahata