Tokyo Gas Asia buys stake in PV Gas subsidiary
The two parties also agreed to work on a strategic alliance that will tap Japanese technology and energy-saving practices.
PV Gas retains 50.5 per cent in the subsidiary, the PetroVietnam Low Pressure Gas Distribution ((PVGas D), with the remaining 24.6 per cent belonging to other shareholders. Listed on the Ho Chi Minh Stock Exchange since 2009, the company has a foreign ownership limit of 49 per cent.
Along with the equity stake, Tokyo Gas Asia has signed a strategic alliance with PVGas D for natural gas distribution in Vietnam.
It will use its technologies and expertise in areas such as demand development and the introduction of energy-saving technologies to boost the business value of PVGas D.
Established in 2007, PVGas D has focused on pipeline networks, compressed natural gas, and wholesaling.
It has targeted an increase of nearly 26 per cent in revenue this year, to VND5.9 trillion ($259 million) but expects net profit to fall 28.1 per cent to about VND157 billion ($7.1 million), as it will invest in more distribution systems in northern Vietnam and expand into other businesses, including urban gas distribution.
In 2012, Tokyo Gas and PV Gas signed a comprehensive memorandum of understanding on the development of a liquefied natural gas value chain in Vietnam. This led to the establishment of LNG Vietnam, a joint venture, in 2016.
Last week, PV Gas, which is a part of the State-owned PetroVietnam, posted revenue of VND32.5 trillion ($1.47 billion) in the first half of this year and net profit of VND4 trillion ($181 million), up 9.6 per cent and 31 per cent, respectively.
PV Gas has been gearing up its investments to prevent shortages over the next five years. Major projects include the $285 million Thi Vai LNG terminal and the second phase of the 325-km Nam Con Son offshore pipeline, which came online in April.
Source: Vietnam Economic News
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