INTERVIEW: JXTG Aiming to Win 100,000 Gas Retail Contracts Early

Economy

Tokyo, Jan. 4 (Jiji Press)--Major Japanese oil wholesaler JXTG Holdings Inc. <5020>, which aims to launch city gas retail operations by the end of March, hopes to win 100,000 contracts in the new business area "as early as possible," its president, Tsutomu Sugimori, has said in a recent interview.

The company plans to sell city gas in the Tokyo metropolitan area first, with the aim of gaining as much market share as possible by setting prices at levels lower than those of Tokyo Gas Co. <9531>, the top gas supplier in the Japanese capital and its vicinity, according to Sugimori.

Japan's city gas retail market was fully liberalized in April 2017. JXTG's entry is expected to fuel competition in the Tokyo area, where suppliers had been switched for only some 610,000 contracts as of the end of November last year, compared with some 710,000 contracts in the Kinki western region.

The firm has clinched some 530,000 electricity retail contracts since it entered the business area in April 2016 upon the full liberalization of the market. After making inroads into the city gas market, JXTG initially plans to sell gas and electricity as a package to these customers.

JXTG was established in April 2017 through the business integration of JX Holdings Inc. and TonenGeneral Sekiyu K.K.

[Copyright The Jiji Press, Ltd.]

Jiji Press