Japan's Itochu Strengthens LPG Business in Philippines

Itochu Corporation last week said it has formed a new company to strengthen its LPG business in the Philippines.

The newly formed entity will be called Creasia Energy Holdings. Itochu and local partner Isla Petroleum & Energy operate a local LPG business Isla Petroleum & Gas Corporation (IP&G), which was established in August 2011 to acquire Shell’s LPG business in the Philippines.

IP&G creates its own brand Solane and runs the business from LPG import to wholesale and retail. Itochu believes Creasia will develop the corporate value of IP&G.

Given Philippines’ geography, transportable LPG has an advantage over city gas, which requires laying of conduit pipes, and with favorable conditions provided by the recent drop in resource prices, the acceleration of LPG penetration to each household is expected, Itochu said. 

Itochu handles about five million tonne of LPG each year and has been marketing to mainly Japan, China, South Korea, India, Indonesia, Thailand and the Philippines. The company believes demand for LPG is expected to increase significantly in Asian countries.