Shizuoka Gas Company, Ltd. (hereinafter, Shizuoka Gas) today filed an application with the Director of the Kanto Bureau of Economy, Trade and Industry for permission to amend the terms General Supply Provisions and Optional Supply Provisions mainly to reduce the tariff applicable to the Company’s “small-lot” customers. Compared with the current tariff, the revised tariff, effective January 1, 2012, will be on the average 3.85%/m³ lower.

 

Revision of gas tariff

Shizuoka Gas started importing LNG in 1996. Since then, the Company has focused on promoting the use of natural gas in its service area and increasing sales, particularly to large industrial users. At the same time, to assure stability of gas supply, Shizuoka Gas has concentrated on building up its core infrastructure, including construction of trunk and distribution pipelines and installation of new facilities at its LNG receiving terminal.

 

With the pipeline network and the third LNG storage tank coming on stream in 2010, the round of major investments for developing the core supply infrastructure have been completed. Shizuoka Gas launched a review of gas supply costs in the context of the above initiatives.  

 

Reduction in the tariff applicable to the Company’s “small-lot” customers has been realized as a result of the review of gas supply costs to factor in lower fixed costs achieved through higher sales of LNG as well as other cost reductions made possible through higher operating efficiency.

 

The revised tariff will bring down the monthly gas bill for an average household (note) by \227.

 

Note: Gas consumption at an average household is estimated at 29m³/month (based on the 5-year (2006-2010) monthly average household gas consumption volume).