Japanese utility Osaka Gas, through its subsidiary in Singapore, has formed a new company to enhance the supply of natural gas in Vietnam.
Osaka Gas Singapore has partnered with Sojitz Corporation and Sojitz Vietnam to establish Sojitz Osaka Gas Energy Company.
The new firm will implement natural gas supplies to Phu My 3 Specialised 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.
The aim is to address the growing demand for natural gas in Southeast Asia.
Increased economic growth has driven the demand for energy in Vietnam.
The launch is in line with efforts to encourage the use of natural gas over coal, heavy oil and LPG to meet energy demands.
The new company is also expected to improve consumer energy efficiency and reduce the environmental impact of energy generation.
The project is projected to record sales worth 15 billion yen 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.