Energy Division – Main Businesses & Vision –

Business Overview

Has oil and gas interests in the United States, the British North Sea, the Middle East and Africa. Operates the LNG business in Indonesia and Qatar, and the nuclear power business, primarily as the sole distribution agent in Japan for the French nuclear energy company Areva SA.

【Main Products】

▶  Oil, natural gas, LNG, petroleum products (gasoline, kerosene and light oil, heavy oil and asphalt, etc.)
▶  Nuclear fuel cycle services and nuclear-related equipment

Oil and Gas

Block 1SE, offshore Qatar
Promoting regionally-well balanced acquisition and development of upstream oil and gas interests
Expanding import, export, offshore/domestic trading of petroleum products as part of our petroleum/gas logistics and trading business.
[Major Business Activities] Oil and Gas Business
[Major Business Activities] Energy Trading Business

LNG

An LNG carrier
We will expand the LNG business throughout Asia and the Middle East through our associated company, LNG Japan Corporation (Sojitz ownership: 50%), and develop LNG spot imports and offshore trading.
[Major Business Activities] LNG Business

Nuclear Power Projects

GB-II uranium enrichment plant in France
Offering nuclear fuel cycle and related services.
Providing sales and services for nuclear equipment and materials through e-Energy, a fully-owned Group subsidiary
[Major Business Activities] Nuclear Power & Utility Business

Business Overview and Vision

Developing an energy value chain that meets diverse needs, with a mission to provide a sustainable and stable supply of energy resources

  • ▶ Together with our customers, we establish and develop arrangements to provide a stable supply of energy resources such as LNG, oil and gas, and nuclear power to Japan.
  • ▶ We play a role in promoting the realization of a low-carbon economy through the establishment of a value chain, mainly for gas, and new approaches to biomass fuels in response to increasing global demand for energy, driven by emerging countries.

Strengths That Drive Value Creation

  • ▶ Business expertise that has deepened the value chain from upstream to midstream and downstream together with our customers and business partners in line with changes in the operating environment in the field of energy resources through participation in the LNG and the oil and gas production industries, LNG, oil and gas trading, and provision of comprehensive services for the nuclear fuel cycle
  • ▶ A solid foundation of customer trust built over many years in energy resource-related sectors

Strategies and Initiatives

Global energy consumption is expected to increase steadily in tandem with economic growth centered on China, India and other emerging countries in Asia. At the same time, due to the start of a substantial worldwide movement toward a low-carbon economy with the enactment of the Paris Agreement, which is a new international framework for global warming countermeasures, natural gas and renewable energy are expected to account for an increasing share of the energy mix as primary energy sources that will accommodate the increase in consumption.

Given the prospect of significant changes in the energy mix, our mission in handling energy resources is to provide appropriate solutions to the social issue of achieving both preservation of the global environment and economic growth by leveraging our long-standing, solid relationships of trust with our customers and our wide-ranging business expertise in energy.

In light of the business environment described above, this division will work to develop an energy value chain that meets the diverse needs of countries at differing stages of development and promote initiatives to realize a lowcarbon economy.

First, in the oil and gas sector, we are working to enhance our resilience to weak market conditions by promoting ongoing improvements in operating costs in our existing upstream interests. At the same time, we are determining the assets that are losing their relative competitiveness due to changes in the business environment in order to shift to midstream and downstream businesses, mainly in gas, and the renewable energy fuel supply business, among others. For example, building on the trading know-how and customer base we have cultivated over many years as a pioneer in LNG from Indonesia, we will develop businesses with a focus on emerging countries in Asia where demand for gas is rising by creating a package of multiple midstream and downstream businesses including an LNG receiving terminal operation business, a gas supply business for gasfired power plants, a cogeneration business for industrial parks and a fuel supply business for LNG-powered vehicles. We also aim to build a long-term, stable supply system for clean fuels such as woody biomass in the renewable energy sector.

Next, in the nuclear power sector, as the sole distribution agent in Japan for France’s AREVA (New Areva Holding SA), the world’s largest nuclear power industrial conglomerate, we have provided comprehensive services relating to nuclear fuel procurement and reprocessing for Japan’s electric power companies for close to 50 years. In addition, through a subsidiary we conduct sales of nuclear power-related equipment and materials and will continue our extensive involvement throughout Japan’s nuclear fuel cycle. Going forward, we also intend to step up our focus on scouting out and introducing new technologies that will contribute to safe reactor decommissioning processes. One example is the induction heating (IH) coating removal technology of our wholly owned subsidiary e-Energy Corporation. This technology is currently used to remove rustproofing and anti-corrosion paints from large bridges and crude oil staging terminals, but in the future it is also expected to be used in decontamination of various types of waste during decommissioning.

A tanker carrying Indonesian LNG leaves a terminal facility

We believe that adding businesses to the division’s portfolio that will help resolve the various social issues in the energy sector will make us less susceptible to fluctuations in market conditions and the status of restarting nuclear power plants, thus enabling us to establish a base for longterm, stable earnings and increase corporate value.

Opportunities

▶  Medium-to-long-term increase in energy demand due to economic growth in emerging and developing countries
▶  Growing need for clean energy resources in tandem with rising global environmental consciousness

Risks

▶  Weakening growth of the global economy
▶  Changes in design and delays in introduction of various systems, such as deregulation and privatization, on which new initiatives are premised
▶  Fluctuations in oil and gas prices

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