Japan’s Air Water allies with Vietnam’s Pacific Petro to launch LPG sales
HANOI, NNA – Major Japanese industrial gas maker Air Water Inc. has teamed up with a Vietnamese liquefied petroleum gas seller to enter the growing energy supply market in the Southeast Asian country.
The Japanese firm acquired a 51 percent stake in Pacific Petroleum Import and Export Trading Joint Stock Co., which was established last May to succeed the LPG sales operations of Pacific Petro Commercial Joint Stock Co., according to Air Water’s statement on Dec. 19.
The move is the first for Air Water in launching energy business in foreign markets. The Japanese firm will dispatch two executives to the local venture, a spokesman told NNA late last month.
The share purchase was completed on Dec. 27 as initially planned at a cost of about 2 billion yen ($18.5 million), another spokesman for the Osaka-based company told NNA on Wednesday.
Air Water, which has run LPG and kerosene sales in Japan for over half a century, will provide expertise in supply to industrial users and housing complexes to expand the operation of the joint venture with the local major LPG vender in the Vietnamese market, which has been growing 8 to 9 percent annually as energy demand shifts to LPG from electricity due to lower costs, the statement said.
Pacific Petro Commercial holds the remaining 49 percent share in the joint venture with annual sales of about 780 billion dong ($33.7 million), according to the statement.
The local partner, which had sold LPG mainly to households, has seized a high market share in Ho Chi Minh City, the country’s commercial capital, Air Water said.
The Japanese industrial gas producer is also eyeing neighboring countries such as Cambodia and Laos, according to the company.