Japanese utility Tokyo Gas has started work on spinning off its gas pipeline operations, announcing  on March 24 it will establish a separate company to manage the business. It needs to separate its pipeline division no later than April 2022 under the Gas Business Act.

The spin-off will need approval by shareholders at Tokyo Gas' annual general meeting, scheduled to be held in June 2021. The company will also need to obtain licences and secure approvals from government agencies.

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The new company, Tokyo Gas Network, will be a fully owned subsidiary of Tokyo Gas and will come into existence on April 1 this year. On April 1, 2022, the assets, liabilities and other rights and obligations related to the gas pipeline business of Tokyo Gas will be transferred to Tokyo Gas Network, which will then start operations as a pipeline business operator.