Trader Sojitz, Osaka Gas to supply natural gas in Vietnam
HO CHI MINH CITY, NNA - Major Japanese trader Sojitz Corp. is teaming up with Osaka Gas Co. to launch a large-scale natural gas venture in southern Vietnam in anticipation of growing industrial demand.
The two firms will establish Sojitz Osaka Gas Energy Co. in August to supply natural gas to tenants in Phu My 3 Specialized Industrial Park in the southern province of Ba Ria-Vung Tau and is slated to begin operation in 2020, an Osaka Gas spokesperson told NNA on Monday.
Sojitz and its local subsidiary Sojitz Vietnam Co. will jointly own a 51 percent stake in the joint venture while Osaka Gas Singapore Pte. Ltd., the utility's wholly owned unit, will hold the remaining 49 percent. The spokesperson, however, did not comment on how much the investment would cost.
The move marks Osaka Gas's first foray into Vietnam following its entry into Indonesia, Singapore and Thailand, the spokesperson said.
Sojitz Osaka Gas Energy plans to initially supply gas to five tenants in the industrial park as early as 2020 and is aiming for 4 billion yen ($37 million) to 5 billion yen in sales, according to the spokesperson.
The joint venture plans to serve clients at other industrial parks as well as major gas consumers and hopes to bring in 15 billion yen in sales by the end of Japan's fiscal year 2030, the two Japanese companies said in a statement.
The joint venture also plans to provide other services such as gas equipment installations and operations for major users in the Southeast Asian country.
In Vietnam, Sojitz began imports and sales of liquefied petroleum gas in the late 1990s and started selling industrial-grade LPG in 2007.
In 2014, the Tokyo-based trader started operations to supply natural gas to tenants in Long Duc Industrial Park in Dong Nai Province near Ho Chi Minh City. (NNA/Kyodo)