Air Water (AWI) is going to start selling LP gas in tie-up with Pacific Petro which is engaged in the LPG business mainly in Ho Chi Minh City, Vietnam.
In Vietnam AWI established Air Water Vietnam in 2014, and has been developing the industrial gas business with the pipeline supply to electric furnace steelmakers as the main activity. It is now followed by the second launch at this time with the first realization of energy business abroad.

Pacific Petro is the biggest private company dealing with LPG in Vietnam with a handling volume second largest next to that of the government-run Pero Vietnam. It engages in wholesaling of LPG, production of LPG cylinder, real estate and beverage businesses with an annual trade amount of 795.6 billion VND (equivalent to JPY3.74 billion) and a handled volume of LPG at about 48 thousand tons. Pacific Petro has transferred the LPG wholesale and cylinder production business which makes the majority of its annual sales to Pacific Petroleum Import and Export Trading Company established by the former in May 2019. This local JV with investments of 51% by AWI and 49% by Pacific Petro is going to a start business operation from December 27.

The Vietnamese LPG market has been growing at a rate of 8% and 2 million tons in volume per annum (as of 2018). Particularly, the demand of LPG for household use which accounts for 50% is forecasted to grow more because of the increase in the number of middle-income class people.

Air Water has an eye to the development of wholesale and retailing in the city of Ho Chi Minh and its vicinity which accounts for 29% of the total demand at home. The transportation of LPG in Vietnam is quite different from that in Japan because the Vietnamese consumers in general go out to buy LPG and fix cylinders themselves.

Air Water is planning to apply the supply system of Japanese style using a gas meter and try to gain an advantage by providing safety devices like an alarm. 　

Katsumi Kajiwara, Managing Director and Chief of Energy Company talked about his strategy saying, “As there lies a too significant issue of cost hike to diffuse a metering system now, it seems to take some time. So, we intend to first tackle such services in delivery as bringing cylinders in time for replacement before users run out of gas.”

The actual business operation is planned to start in spring of 2020, and they forecast a business scale in five years to be doubled to JPY7.8 billion in sales amount and a volume to handle of LPG to be 100 thousand tons.

Pacific Petro has two filling stations and one cylinder manufacturing plant in Ho Chi Minh City now, but intends to consider expanding business areas or capital investments as needs may grow.