A liquefied natural gas tanker operated by Energy Advance Co., a unit of Tokyo Gas Co. (Photo: Bloomberg)
Tokyo Gas will establish a joint venture with PetroVietnam
Gas (PV Gas) and other Vietnamese firms by the end of this month in a move to tap an expected increase in demand for liquefied natural gas (LNG) in the Southeast Asian country.
The Japanese city gas company will invest several hundred million yen (100 million yen = $994,600) to secure a stake of around 10-20% while PV Gas, a subsidiary of state-run Vietnam Oil and Gas Group, will hold a majority of the joint venture, Nikkei reported.
The joint venture will firstly launch feasibility studies to explore the possibility of building an LNG plant for storage and pipelines to create a supply network. If the studies look promising, the scale of the joint venture likely will be expanded.
Vietnam consumed roughly 10 billion cubic meters of LNG in 2014, rising roughly 5% from the preceding year. To satisfy growing demand for electricity, the country is looking to add gas-fired power plants to supplement its mainstay coal-fired and hydroelectric facilities.
LNG is also in demand as an energy source for industrial parks around Ho Chi Minh City
, the country's southern metropolis.