Osaka Gas Singapore, a wholly-owned subsidiary of Osaka Gas Co., and a Daigas Group company, has agreed to form, together with Sojitz Corp. and Sojitz Vietnam, a new joint venture company, Sojitz Osaka Gas Energy Co., with the aim of supplying natural gas in the Socialist Republic of Vietnam.
The new company plans to implement natural gas supplies to Phu My 3 Specialized Industrial Park, in the southern Vietnamese province of Ba Ria-Vung Tau, as well as compressed natural gas supply business via trucking for industrial customers within Vietnam.
This project marks the fourth country for Daigas Group as it expands in Southeast Asia, after Singapore, Thailand and Indonesia. This also marks the third country, following on Singapore and Thailand, for its engagement in natural gas supply work overseas.
The demand for energy continues to increase as a result of economic growth in Vietnam. There are multiple industrial zones in the southern region of Vietnam, where this project is slated to occur, in a concentrated area of heavy and chemical industries, with the further expectation that the region will also soon be home to new expansion for several manufacturing companies as well.
The new company, through this project, will not only promote the efficient use of cleaner natural gas as well as actively propose natural gas as an alternative option of fuel to coal, heavy oil, and LPG, but will also contribute to energy savings in Vietnam as well as decrease the environmental impact there. Taking advantage of the unique knowledge and experience from both the Sojitz Group, with its impressive track record for IPP and industrial park operations in Vietnam, as well as the Daigas Group, an experienced natural gas supplier, the promotion of this project is projected to record sales of 15 billion yen ($140 million) by fiscal year 2030. There are also future plans under discussion to grow energy services as well as support for new infrastructure, using various financial strategies.
In Going Forward Beyond Borders; 2030, the long-term corporate vision and medium-term corporate planning for the Daigas Group, one of the state objectives is to accelerate the growth of its overseas energy business. With Southeast Asia positioned as a key region of activity, Daigas will not only appropriately meet current needs, but will promote their business to expand overseas energy opportunities in light of the projected growth in energy demand for Southeast Asia in particular.
