Mr Kimata has been Representative in Southeast Asia of Osaka Gas and Chairman of Osaka Gas Singapore since April 2015. Before the current position, he was Director of Research Institute for Culture, Energy and Life of the company for four years, where he was also Chief Editor of the magazine that presents its research results.
After joining the company in 1978, Mr Kimata was sent to University of Kent at Canterbury in UK to do post-graduate studies in Applied Economics (1983-1984).
Mr Kimata has had wide-ranging experiences in such fields as residential gas marketing, R&D planning and management at Energy Technology Laboratories, and corporate planning.
Mr Kimata also has international experience as Representative in Europe based in London between 1996 and 2000.
Mr Kimata graduated from Kyoto University with a bachelor’s degree in law in 1978.
1. What can Southeast Asia learn from Japan, in terms of energy regulation and policy?
Japan is heavily dependent on imports, having no energy resources of its own except limited amounts of useable hydro, forestry and geothermal energy. The country’s location also means Japan pays a high price for long-distance energy transportation to secure stable energy supplies for economic development. Under such circumstances, the Japanese are very conscious about using energy efficiently. The philosophy, “Not to waste anything” has been deeply rooted in the hearts of all Japanese.
The Japanese Government introduced the Energy Conservation Act in 1979 to accelerate energy saving efforts during the oil crisis in the 1970s. Since then, the Act has been repeatedly revised over 35 years to adjust for actual energy use and changes in the social environment. As a result, this Act has reached high degree of completion, and has been imposed on a wider range of energy resources, energy users and energy appliances. Moreover, commercial buildings and residential houses where energy is used are also regulated by the Act.
Furthermore, through the “Top Runner Programme” – a set of energy efficiency standards for energy intensive products – the Act has helped to promote technical innovation among manufacturers to continually come up with more energy efficient appliances and facilities. This in turn has enhanced the competitiveness of Made-in-Japan products in global markets.
I am convinced that the Japanese approach to energy regulation will be useful in informing energy regulations and industrial policies in Southeast Asia, where energy demand will constantly increase.
Also, as Japan is prone to natural disasters, its energy policy and industry-wide practices – which emphasize the security of energy supply to minimise disruption to industrial activity and people’s day-to-day life when disasters occur – could provide suggestions for Southeast Asian countries to consider in their energy policy.
2. What is your view on the mid-term gas outlook for Southeast Asia?
Energy demand in Southeast Asia is expected to steadily increase as its economy grows. Natural gas, the most environmentally friendly energy source among the fossil fuels, will play a major role in meeting the great power generation demand in the region, while addressing environmental concerns.
Demand for imported LNG is projected to rise as domestic gas reserves in many countries are depleting, resulting in supply shortage.
3. How is Osaka Gas planning to expand and work with gas players in the region?
Osaka Gas has been supplying gas to industrial and commercial customers as well as residential customers for more than 110 years. Starting with coal-based and then oil-based manufactured gas, we introduced LNG 40 years ago and have been handling LNG ever since. Our business encompasses both downstream and upstream sectors, from gas applications, R&D and industrial engineering to district energy supply.
Having accumulated broad expertise in these areas and developed related technologies, Osaka Gas is not just a simple gas supplier but also a solution provider. Our value-oriented solutions are developed with the “best and brightest” manufacturers, engineering companies and financial institutes. This co-ordination and collaboration capacity is one of our capabilities that can be applied to our activities in Southeast Asia, and contribute to developing the natural gas market and to energy saving through collaboration with local players.
We have already formed joint ventures with players such as City Gas in Singapore and PTT in Thailand, and are planning to extend such collaborations with other players to further develop regional businesses together.
4. What do you think are innovations that could disrupt the Southeast Asian gas market?
Osaka Gas has its own R&D centre and has been creating innovations with various partners. Among those innovations, the ones most applicable to the Southeast Asian gas market are high efficiency co-generation system and exhaust-heat-recovery type burners.
Such innovations impact the gas market mainly in two ways. One is the creation of new demand and the other is improvement in energy efficiency, which achieve both energy savings and reduced environmental pollution.
5. What are your thoughts on the SIEW 2016 theme “New Energy Realities”?
The low oil price is the most dominant reality we face. The change of the expected price range from $80-$100 to $30-$50 slows down both the development of renewable energy, and the shift to more environmentally friendly energy options like natural gas. Coal is also made more attractive in this low energy price situation.
Conversations around the theme should go beyond the industry level, which traditionally focuses on response to demand, and address the growing criticisms on free competition, economic efficiency supremacism, globalism and short-termism.
To meet the challenges of achieving economic growth and preventing global warming, it is vital to have cooperation not only between the energy industry and related governmental bodies – but also among countries and international organisations. In addition to that, consumers and the wider society should also be involved in these discussions.
Open up the boundary, not just the market!