As head of the business unit, the post he was appointed on Apr 1, 2013, Mr Ryoki oversees the entire marketing operations of energy products and services of Osaka Gas for commercial and industrial customers. He was also appointed as member of the board in Jun, 2013.
Prior to the current position, Ryoki served as president of Osaka Gas Chemicals Co. Ltd., an Osaka Gas affiliate and manufacturer/marketer of carbon fibers and other fine and functional materials, between Jun 2010 and Mar 2013. He also experienced his executive responsibilities as head of regional marketing operations for residential customers in a metropolitan Osaka area.
Among his middle management positions, Ryoki worked as Senior General Manager of the Energy Resources and LNG Trading Unit for six years developing the company’s LNG portfolio and international energy investments.
After joining Osaka Gas in 1979, he developed his early career in Osaka Gas in the fields of gas marketing and LNG procurement and in the field of finance to raise funds from the capital markets and IR.
Mr Ryoki was educated at Kobe University where he earned his bachelor’s degree in law.
1. Natural gas is slowly increasing its share in the energy mix of many Asian countries, due to its lower carbon emissions and higher fuel efficiency. What are some of the factors that could prevent or help natural gas become the dominant power source in the long run?
There are several features of natural gas that could increase its use as a power source, including its abundant reserves and higher availability – the latter of which makes its supply geopolitically stable.
The shale gas revolution in the United States has not only elevated the level of its reserves in the country, but it dramatically added diversity to the world’s supply of natural gas.
Looking at the price levels of fuels for power generation, Asian LNG is competitive against oil but it falls far behind coal. In order to develop the use of LNG for power generation other than for peaking-use purposes, it will be essential to lower LNG’s high price levels to improve its competitiveness as compared with other regions.
2. Japan is the world’s largest importer of LNG. What are some lessons that Singapore can learn from Japan as it aims to become Asia’s LNG trading hub?
Formation of an LNG trading hub in Asia – along with a subsequent transparent trading market in the region – should prove to be a benefit for LNG players. It would allow both sellers and buyers to refer to LNG price indicators that reflect market conditions. I look forward to sharing more details when I speak at the Singapore Energy Summit.
3. Osaka Gas Group had previously unveiled its business plans in the "Field of Dreams 2020". Could you share with us what are some of the upcoming plans and developments in the Southeast Asia region?
Since its establishment in Singapore in 2011, Osaka Gas Singapore has worked to develop opportunities in South East Asia. In 2013, the company formed a joint venture with City Gas and started a gas retail business for industrial customers. Similarly, Osaka Gas launched a local company in Thailand to start an energy services business in the country.
We are also working to develop downstream energy business for industrial energy users in other countries in the region, and more, we would like to expand our business through the LNG value chain, such as LNG trading or investment to LNG receiving terminals and gas fired power stations.
4. With Asia’s growing energy demand, there is also an increasing concern about environmental sustainability. How does Osaka Gas ensure that commercial undertakings to meet this demand are more environmentally friendly?
Given the most environment-friendly features of natural gas among fossil fuels, simple switching of fuel from coal, fuel oil, or diesel fuel, to natural gas helps reduce environmental footprints.
Osaka Gas has moved a step forward to develop technologies to utilize natural gas in a more efficient manner. Examples of such technological innovations include; high efficiency burners by means of exhaust gas regeneration, energy efficient CHP systems, and development of new furnaces for use on natural gas. These new systems have been designed to provide our customers with energy solutions for reducing fuel consumption while reducing costs and CO2 emissions. They will contribute to addressing the global environmental problems in a sustainable manner.
Osaka Gas is also working to reduce energy consumption in some segments of the LNG value chain, including use of LNG vessels with higher fuel economy for LNG transportation, and power generation by means of utilizing cryogenic energy of LNG in LNG receiving terminals. We would like to enhance those technologies for this region and contribute to reduce the environmental foot print.
5. Besides natural gas, Osaka Gas is also engaged in power-generation projects in the renewable energy sector. Within this sector, where do you see are the areas that are promising for investors?
Economics of renewable energy projects still involve a great deal of difficulties without having government support such as FIT (feed-in tariff) and subsidies. Looking at renewable energy sources besides solar and wind, Asian countries have their own potential sources such as geothermal in the Philippines and rice husks in Thailand. Our decision for investment in Asian renewable power projects may depend on availability of incentives and support programs in these countries.
There has been a dramatic rise in the development of renewables in Japan, particularly solar cells, since the country’s introduction of FIT regime. Osaka Gas has been engaged in direct investments in solar and wind projects as well as in arranging customers’ introduction of solar cells through a subsidiary called Energy Bank Japan. We also have other projects in renewables such as biogas production in cooperation with municipal government for injecting the purified gas from the sewage into our supply network. There are other projects such as biogas-solar hybrids in Japan, and solar and wind projects in other countries. In making our investment decisions in international markets, we would make our judgment after analyzing regulatory framework and investment environment.