Osaka Gas, PTT to Form Energy Business JV in Thailand
Osaka Gas and PTT will establish a company that will provide fuel conversion energy services to industrial customers in Thailand.
An agreement was signed in Osaka between Osaka Gas (Thailand) Co., a subsidiary of Osaka Gas Co., Ltd. and PTT Retail Business Co., Ltd., a subsidiary of PTT Group will establish OGP Energy Solutions Co., Ltd. (OGPS), Osaka Gas said Tuesday.
The move is part of Osaka Gas’ plan to expand its downstream business outside Japan. This has already resulted in gas sales business in Singapore through City-OG Gas Energy Services Pte. Ltd., energy service business in Thailand through OGT and cogeneration/on-site business in Thailand through NS-OG Energy Solutions (Thailand) Ltd., a company jointly invested with Nippon Steel & Sumikin Engineering Co., Ltd.
Prior to establishment of OGPS, Osaka Gas’ energy service business in Thailand focused primarily on Japanese companies. However, OGPS will be able to target both non-Japanese and Japanese companies in Thailand to expand energy service business, the company said.
OGPS will provide a one-stop service in Thailand covering natural gas supply, facility design, equipment leasing and maintenance, all of which are required for fuel conversion to natural gas. In exchange for such services, the company will receive energy service fees from customers.
“Based on an MoU concluded with PTT on information exchange and joint study regarding liquefied natural gas (LNG) as well as natural gas supply, Osaka Gas Group has for some years been stepping up cooperation with the PTT Group through operational and technical support for PTT’s LNG receiving terminal. The establishment of OGPS will serve as an opportunity to explore the possibilities of further expansion of the joint energy business between PTT and OGT in Thailand and development of a broader range of business activities outside the country,” Osaka Gas said. .
Osaka Gas will own 60 percent stake in the joint venture while PTT will hold the remaining 40 percent interest.