Osaka Gas Co., Ltd.: Establishing a Natural Gas Supply Company in Vietnam

OSAKA, Japan–(BUSINESS WIRE)–Osaka Gas Singapore Pte. Ltd., a wholly-owned subsidiary of Osaka Gas
Co., Ltd. and a Daigas Group^*1 company, has agreed to form,
together with Sojitz Corporation and Sojitz Vietnam a new joint venture
company, Sojitz Osaka Gas Energy Company Ltd. (hereafter referred to as
“the new company”), 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 they expand
their business in Southeast Asia, after Singapore, Thailand, and
Indonesia. This also marks the third country, following on Singapore,
and Thailand, for their 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 decreasing
the environmental impact there. Taking advantage of the unique knowledge
and experience from both the Sojitz Group, with their 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 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.

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 their
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.

*1 On March 8, 2018, Osaka Gas Co., Ltd. launched a new group brand
“Daigas Group.”

Contacts

Press Inquiries:
Osaka Gas Co., Ltd.
South East Asia Energy
Business Dept.,
Energy Resources and International Business Unit.
Telephone:
+81-6-6205-4564