Japan’s successful and growing gas companies

Liberalization leads to increasing competition and partnerships between Japan’s regional electricity and gas companies

Japan gas companies grow at an annual rate of 4.1% and show steady income

Japan gas companies grow at an annual rate of 4.1% and show steady income, and have developed into serious competitors for Japan’s electricity operators, while also cooperating in electricity generation.

We have added 50 pages coverage of Japan’s very successful gas sector to our Japan-Energy-Report.

Gas companies show healthy income. Electricity operators report increasing losses
Gas companies show healthy income. Electricity operators report increasing losses

Japan’s gas companies are profitable and grow while electricity operators’ revenues stagnate and descend into losses:

We compared Japan’s gas sector with Japan’s electricity operator sector:

  • Japan big-4 gas companies’ revenues grew 4.1% per y
    Japan gas companies grow at an annual rate of 4.1% and show steady income. Increasing competition and cooperation between electricity and gas companies
    Japan gas companies grow at an annual rate of 4.1% and show steady income. Increasing competition and cooperation between electricity and gas companies
    ear for the last 12 years, while reporting stable income.
  • Japan’s 10 regional electricity operators show stagnating revenues, while descending into deep losses.

Japan’s gas companies develop into competitors for the regional electricity operators

Electricity operator's descent towards losses started in 2007, well before the Fukushima nuclear disaster
Electricity operator’s descent towards losses started in 2007, well before the Fukushima nuclear disaster

Descent into crisis of Japan’s electricity operators started in 2007:
Figure above clearly shows that the decent of Japan’s electricity operators started years before the Fukushima nuclear disaster. Therefore we conclude that restarting the nuclear reactors alone will not cure the crisis of Japan’s electricity operators, which for many years have enjoyed a monopoly position, and are now increasingly under attack by competitors including Japan’s very successful gas companies.
We added approx. 50 pages analysis of Japan’s gas sector to our Japan-Energy-Report.

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