History and Current Status of Hokkaido Gas’s Natural Gas Conversion (1996–2020s)

History and Current Status of Hokkaido Gas’s Natural Gas Conversion (1996–2020s) 1996: Start of Natural Gas Conversion On May 9, 1996, Hokkaido Gas (Hokkaido Gas) began work to convert city gas to natural gas in Atsubetsu Ward, Sapporo. The plan was to utilize natural gas produced in Hokkaido from the Yufutsu Gas Field in Tomakomai City and complete the conversion for approximately 500,000 households in Sapporo by 2006. Natural gas was recognized as a clean energy source because it emits less carbon dioxide and sulfur oxides than oil or coal. Through this plan, Hokkaido Gas aimed to reduce the environmental impact and improve energy efficiency across the entire city. 2000s: Progress in Conversion and Strengthening of the Supply Infrastructure In 2002, the natural gas conversion in the Chitose district was completed. In 2003, the natural gas pipeline known as the “Sapporo-Otaru Trunk Line” was completed, strengthening the supply infrastructure from Sapporo to Otaru. On June 10, 2005, conversion work was completed throughout Sapporo City, with approximately 460,000 households switching to natural gas supply. Subsequently, conversion was completed in the Otaru area (2005) and the Hakodate area (2006), achieving the conversion to natural gas in all major supply areas. 2010s: Expansion of Supply Areas and Introduction of New Technologies In the 2010s, to advance the conversion in the Kitami area, the Kitami LNG Satellite Terminal began operations in 2009. This enabled the start of natural gas supply in Kitami City. In addition, the “Isaribi LNG Terminal” began operations at Isaribi Bay New Port in 2012. This enabled the stable import and supply of LNG (liquefied natural gas), significantly strengthening the energy infrastructure of the entire region. With a capacity to handle 2 million tons of LNG annually, this terminal marked a major turning point in the expansion of natural gas throughout Hokkaido. Furthermore, in 2016, the company entered the retail electricity market, establishing an integrated energy supply system combining gas and electricity. Hokkaido Gas diversified its energy supply, providing energy solutions for businesses and factories in addition to residential services. The 2020s: Initiatives Toward Carbon Neutrality In February 2021, Hokkaido Gas signed a purchase agreement for carbon-neutral LNG with Mitsui & Co., Ltd., becoming the first in Hokkaido to introduce carbon-neutral LNG. Through this initiative, the company sought to reduce CO₂ emissions from natural gas use while working toward the realization of a sustainable society. Furthermore, on January 25, 2023, city gas supply reached a record high of 4,252,079 cubic meters (equivalent to 45 megajoules). This record supply was driven by increased demand for heating, hot water, and snow melting across the region. Summary Since its inception in 1996, Hokkaido Gas’s natural gas conversion program has contributed significantly to the sustainable energy supply of the region, including Sapporo City, for over 25 years. In particular, initiatives to reduce environmental impact—such as the expansion of the supply infrastructure, the construction of LNG terminals, and the introduction of carbon-neutral LNG since the 2010s—have played a crucial role in energy policy across Hokkaido.