Investment and Strategic Alliance in Vietnam Natural Gas Distribution Business[PDF : 201KB]

July 31, 2017

Investment and Strategic Alliance in Vietnam Natural Gas Distribution Business

Tokyo Gas Co., Ltd. Tokyo Gas Asia Pte. Ltd.

Tokyo Gas Asia Pte. Ltd (Managing Director: Nobuhisa Kobayashi, "Tokyo Gas Asia")., a wholly owned subsidiary of Tokyo Gas Co., Ltd. (President: Michiaki Hirose, "Tokyo Gas"), has acquired a 24.9% equity interest in PetroVietnam Low Pressure Gas Distribution Joint Stock Company (Director: Tran Thanh Nam , "PVGas D"), a subsidiary of PetroVietnam Gas Joint Stock Corporation (President: Duong Manh Son, "PV Gas").

Along with the equity interest acquisition, Tokyo Gas Asia and PVGas D have agreed upon a strategic alliance ("SAA"). Based on the SAA, Tokyo Gas Group will utilize its technologies and expertise in such areas as demand development and introduction of energy-saving technologies to enhance PVGas D's business value.

Tokyo Gas and PV Gas back in March 2012 signed a memorandum of understanding for cooperation on the development of the LNG value chain in Vietnam (Comprehensive MOU), and have been in discussions since then on the specifics of the cooperation. The acquisition of the equity interest in PVGas D is the second cooperation under the Comprehensive MOU followed by the establishment of LNG VIETNAM JSC ("LNG VIETNAM").

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.

【Investment and Alliance Scheme】

Comprehensive MOU

100％

Tokyo Gas

PV Gas

Tokyo Gas Asia

24.9％

SAA

75.4%

50.5％

＜Others＞24.6%

PVGas D

Picture from SAA Signing Ceremony

From left in the back row, Mr. Nam(Vice President of PV Gas), Mr. Nghia(Board of Directors of PV Gas), Mr. Anamizu(Senior Executive Officer of TG), Mr. Chinh(Chairman of PVGas D) From left in the front row, Mr. Nam(President of PVGas D), Mr. Kobayashi(Managing Director of TG Asia)

Company Name	PetroVietnam Low Pressure Gas Distribution Joint Stock Company
Director	Mr. Tran Thanh Nam
Established	May 2007
Headquarters	Ho Chi Minh City, S.R. Vietnam
Capital	 VND 900 billion
Shareholders	PVG 50.5%, Tokyo Gas Asia 24.9%, Others 24.6%
Main Business	Pipeline network development, CNG supply, wholesale for CNG operator
Employees	261

Additional Information

Company Name	PetroVietnam Gas Joint Stock Corporation
President and CEO	Mr. Duong Manh Son
Established	September 1990
Headquarters	Ho Chi Minh City, S.R. Vietnam
Capital	VND 19,140 billion
Shareholders	Vietnam Oil and Gas Group 95.76%, Others 4.24%
Main Business	Procurement, refinery, storage, transmission, and sales of natural gas, LPG, CNG, and condensate
Employees	3,870

Company Name	Tokyo Gas Asia Pte. Ltd.
President and Managing Director	Mr. Nobuhisa Kobayashi
Established	December 2014
Headquarters	Singapore
Capital	SGD 124.4 million
Shareholders	Tokyo Gas 100％
Main Business	Business investment and management and the regional headquarter in South East Asia
Employees	11