Japanese energy and chemical firm Air Water is to launch a Ho Chi Minh City-based unit through acquisition of major shares in a domestic firm, in a move to make a foray into Vietnam’s liquefied petroleum gas (LPG) market as well in Cambodia and Laos.
Air Water will acquire 51 percent of shares in Pacific Petroleum Import and Export Trading on December 27. The rest will be controlled by Vietnamese energy giant Pacific Petro, the company announced on December 19.
The Japanese firm’s move is aimed at benefiting from fast-growing LPG consumption in Vietnam and neighboring countries, including Laos.
According to a forecast given by PetroVietnam Gas in 2018, Vietnam will see exceptionally strong LPG demand growth within the next three years. LPG demand is expected to increase from 2.3 million tonnes in 2019 to 3.46 million tonnes by 2022.
In Laos, the consumption of LPG has also steadily grown in recent years. LPG consumption for commercial use increased from 1,431 tons in 2010 to 1,944 tons in 2015. That for residential use also jumped from 883 tons to 1,264 tons during the same period, according to the Lao Ministry of Energy and Mines.