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Osaka Gas Service Area the Kansai Region Can Look Forward to Further Exciting Growth and Development in the 21St SOUTH KOREA Century

Osaka Gas Service Area the Kansai Region Can Look Forward to Further Exciting Growth and Development in the 21St SOUTH KOREA Century

Our Business Territory—The Kansai Region

The Kansai region, the main business territory of the Gas Group, is located near the geo- graphical center of . It consists of six prefectures: Osaka, , Hyogo, Shiga, and . These prefectures have a combined population of 20.8 million (October 1999), of which 8.8 million live in Osaka. This is equivalent to 16.4% of Japan’s total population. There are approximately 7.9 million households in the Kansai region (end of March 2000), which represents 16.6% of the national total. Economic statistics for fiscal 1997 showed that the six prefectures of the Kansai region had a gross economic output of ¥84.3 trillion, a figure similar to the GNP of Canada. The region is Japan’s second biggest economic zone after the Metropolitan Area. Natural gas is supplied to 82.1% of households in the six prefectures of the Kansai region. This saturation rate is higher than the national average of 53.7%. A key focus for international interaction in the region is Kansai International Airport, which was opened in 1994. With links to 30 overseas countries and regions, the airport processes over 10 million passengers and about 800,000 tons of international cargo annually and is a hub for expanding flows of passengers and goods. The completion of a second runway in 2007 is expect- ed to bring a further surge of international exchange in the region. The Kansai region has numerous traditional, cultural and historical attractions, and four locations in the region, including those in the ancient cities of Kyoto and Nara, have been given UNESCO World Heritage status. As one of Japan’s most important tourist destinations, Kansai attracts over 100 million visitors annually. The region’s leisure and tourism industries are expect- RUSSIA CHINA ed to receive a major boost from the opening of a major new theme park, Universal Studios Japan, in April 2001. In addition to its role as a tourist and leisure destination, the new facility is NORTH KOREA also expected to become a center for the development of the motion picture and video business. Service Area The Kansai region can look forward to further exciting growth and development in the 21st SOUTH KOREA century. As a member of the regional community, Osaka Gas will continue to contribute to region- JAPAN al prosperity through its activities as an integrated provider of energy services.

Total Primary Energy Supply Use of Gas by Sector in Japan Import of LNG in Japan Population of the Kansai Region GDP of the Kansai Region Share of Gas Sales Volume Comparison of the GDP of the Number of Customers Twenty-three-year Compound in Japan (Fiscal year 2000) (Calender year 1999) (10 thousand tons) as a Portion in Japan as a Portion in Japan in Japan (Fiscal year 2000) Kansai Region with the GDP (Meters Installed) Annual Growth Rate (Calender year 1999) (Fiscal year 1998) of Major Countries (Thousands of unit) 5,211 (Billions of U.S. dollars) 6,305 6,401 Osaka Gas Sales by 6,083 6,210 5,916 Volume 5.5% Geothermal 0.2% Japan 126.7 million Japan ¥50,509.8 billion Japan 983,575 million MJ New Energies 1.1% 4,645 Hydroelectric 3.6% 3,998 Germany 2,133 Others 3,608 Electric Power 8.0% Consumption 3.4% Nuclear Kansai Region 16.4% Kansai Region 16.6% France 1,451 FY 1976=100 13.0% Osaka Gas 315,912 million MJ Real Economic Residential Italy 1,171 Industrial 39.0% 32.1% Growth 3.0% Petroleum 52.0% Coal 17.4% 36.7% Final Energy United Kingdom 1,387 Consumption 1.6%

Natural Gas Commercial Kansai Region 630 Petroleum 12.7% 16.2% Consumption 1.2% Canada 603

FY 1991 1994 1997 2000 FY 1997 1998 1999 2000 2001 FY 1976 1981 1986 1991 2001

Source: Integrated Energy Statistics Source: Japan Gas Association Source: Japan Gas Association Source: Statistics Bureau Source: Economic Planning Agency Source: Japan Gas Association Calender year 1998, except Kansai Region Source: Agency of Natural Resource and Energy 2 in Fiscal year 1998. 3