Major Japanese City Gas Firms Spin Off Pipeline Service Biz
Newsfrom JapanPolitics Economy
Tokyo, April 1 (Jiji Press)--Three major Japanese city gas companies--Tokyo Gas Co. <9531>, Osaka Gas Co. <9532> and Toho Gas Co. <9533>--on Friday spun off their respective operations to supply gas to households and other users through pipelines.
The separation of pipeline service businesses from gas production and sales operations, implemented under law, is intended to encourage new entries into the city gas sector from other industries, marking a new milestone for the full liberalization of Japan's gas retail market, which started in 2017.
Taking over the three firms' pipeline service businesses respectively are Tokyo Gas Network Co., Osaka Gas Network Co. and Toho Gas Network Co.
Japanese city gas companies other than the three major firms are not required to spin off their pipeline service operations. They will continue to separate the accounting of pipeline service operations from that of other businesses.
Tokyo Gas Network, wholly owned by Tokyo Gas, held a ceremony to mark the launch of its operations on Friday. Takashi Uchida, president of the parent company, said, "We got the opportunity to develop our pipeline service business further."
[Copyright The Jiji Press, Ltd.]