Osaka Gas to Establish Energy Service Joint Venture in Thailand with PTT

News provided by Osaka Gas Co., Ltd.
September 30, 2015 14:00 Korea Standard Time

OSAKA, JAPAN--(Business Wire / Korea Newswire) September 30, 2015 -- Osaka Gas (Thailand) Co., Ltd. (Managing Director: Toshihiro Ouchi; “OGT”), a subsidiary of Osaka Gas Co., Ltd. (President: Takehiro Honjo; “Osaka Gas”), will establish OGP Energy Solutions Co., Ltd. (“OGPS”), a company that will provide fuel conversion energy services to industrial customers in Thailand, through a joint investment with PTT Retail Business Co., Ltd. (Director: Chakkrit Charuchinda, “PTTRB”), a subsidiary of PTT Public Company Limited (CEO: Tevin Vongvanich; “PTT”).

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In its mid-term business plan, “Catalyze Our Dreams,” the Osaka Gas Group aims 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 this joint venture, our 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 by leveraging engineering strengths of Osaka Gas Group and the credibility and brand familiarity of PTT, Thailand's largest corporate group operating energy businesses ranging from importing to retailing of natural gas.

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.

1. Business Overview
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.

2. Investment Scheme
OGPS will be established through joint investment of OGT (60%) and PTTRB (40%).

[Overview of Companies]

· OGP Energy Solutions Co., Ltd. (planned)
Address: 18F, Wave Place Building, 55 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Thailand
To be Established: November 2015
Business Description: Conduct fuel conversion energy services and energy related business activities for industrial customers in Thailand.

· Osaka Gas (Thailand) Co., Ltd.
Address: 18F, Wave Place Building, 55 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Thailand
Established: October 2013
Business Description: Conduct fuel conversion energy services and energy related business activities for industrial customers in Thailand. Carry out activities such as investment, development, and various analysis associated with such services and activities.

· PTT Public Company Limited
Address: 555 Vibhavadi Rangsit Road, Chatuchak Sub-District, Chatuchak District, Bangkok, 10900 Thailand
Established: October 2001
Business Description: Gas and petroleum related business activities. Petrochemical business activities.
Sales: 2.835 trillion baht (FY 2014 results)

· PTT Retail Business Co., Ltd.
Address: 2/4 Vibhavadi Rangsit Rd., Laksi, Bangkok 10210 Thailand
Established: May 25, 2007
Business Description: Holding company for subsidiary companies.

· Osaka Gas Co., Ltd.
Address: 4 Chome-1-2 Hiranomachi, Chuo-ku, Osaka, 5410045 Japan
Established: October, 1905
Business Description: Production, supply and sales of gas and power. Sales of gas equipment.
Sales: 1.252 trillion yen (FY 2014 results)

View source version on businesswire.com: http://www.businesswire.com/news/home/20150928006754/en/

Website: http://www.osakagas.co.jp/en/

Contact

Osaka Gas (Thailand) Co., Ltd.
Administration Team,
General Manager
Kenzaburo Tomita
+66 (0)2-255-7550

This is a news release distributed by Korea Newswire on behalf of this company.