Japanese gas supplier expands operations in Vietnam
Japanese gas supplier expands operations in Vietnam
On July 31, Japan's biggest urban gas supplier Tokyo Gas Asia Pte., Ltd. (Tokyo Gas), a wholly owned subsidiary of Tokyo Gas Co., Ltd., announced acquiring a 24.9 per cent stake in Vietnamese gas firm PetroVietnam Low Pressure Gas Distribution Joint Stock Company (PV Gas D), a unit of PetroVietnam Gas Joint Stock Corporation (PV Gas).
Tokyo Gas officials said the purchase valued about $49 million, based on recent share prices, but declined to comment on the exact price due to a confidentiality agreement.
Tokyo Gas Asia and PV Gas D have agreed upon a strategic alliance. Accordingly, Tokyo Gas will utilise its technology and experience to help PV Gas D expand its gas sales network to industrial natural gas users.
The purchase is not the first co-operation between Tokyo Gas and PV Gas. Earlier in August 2016, a joint venture of Tokyo Gas, PV Gas, and Bitexco Group established LNG Vietnam Joint Stock Company (LNG Vietnam), a liquefied natural gas (LNG) importer and distributor targeting to fill the LNG supply gap in the upcoming years.
LNG Vietnam has a chartered capital of VND100 billion ($4.4 million), PV Gas holds a 51 per cent stake, Bitexco Group 39 per cent, and Tokyo Gas 10 per cent. LNG Vietnam is expected to pioneer LNG in Vietnam, managing all facilities in the country, along with export-import and distribution activities in order to meet domestic demand and trade with other countries in the region.
Besides, in May 2016, leaders of Tokyo Gas and PV Gas met to discuss the investment plan in the construction and operation of Thi Vai LNG warehouse in Cai Mep Industrial Zone in the southern province of Ba Ria-Vung Tau, as well as the expansion and management of LNG warehouse infrastructure and the development of the Vietnamese LNG market in the future. However, to date, the plan has yet to bear fruits.
Tokyo Gas will continue to utilise its technologies and expertise in total energy businesses on behalf of customers operating in Southeast Asia and North America, helping them with energy solutions, while engaging in local infrastructure development. Tokyo Gas Group is also taking up the challenge of value chain development in each region, including partnerships with local energy companies.
