Tokyo Gas, through its subsidiary Tokyo Gas Asia, has acquired a stake of 24.9% in PetroVietnam Low Pressure Gas Distribution (PVGas D) for an undisclosed price.
PVGas D in turn is the subsidiary of the PetroVietnam Gas Joint Stock Corporation (PV Gas). Established in 2007, PVGas D activities include pipeline network development, CNG supply, wholesale for CNG operator.
Along with the equity stake, Tokyo Gas has signed a strategic alliance (SAA) with PVGas D for the natural gas distribution in Vietnam.
Under the deal, Tokyo Gas Group will use its technologies and expertise in areas such as demand development and introduction of energy-saving technologies to boost the business value of PVGas D.
Tokyo Gas stated: “The Tokyo Gas Group will continue to utilize 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.
“The Tokyo Gas Group is also taking up the challenge of value chain development in each region, including through partnerships with local energy companies.”
In March 2012, Tokyo Gas and PV Gas had inked a memorandum of understanding (MOU) for cooperation on developing the LNG value chain in Vietnam. However, since then, the parties have been in talks on the particulars of their cooperation.
The latest equity acquisition in PVGas D marks the second cooperation under the 2012-signed MOU with the first one being the formation of their joint venture in August 2016, named as LNG Vietnam JSC.
According to Tokyo Gas, LNG Vietnam JSC was established to handle activities such as LNG sourcing, LNG sales, and construction and operation of LNG receiving terminal.
Image: SAA signing ceremony between Tokyo Gas and PV Gas officials. Photo courtesy of TOKYO GAS Co., Ltd.