Strengthening and Expansion of LPG Business in the Philippines
May 13, 2016
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) today announced that we established Creasia Energy Holdings, INC.(headquartered in Minato-ku, Tokyo; hereinafter “CREASIA”) together with ITOCHU ENEX Co., Ltd.(headquartered in Minato-ku, Tokyo; Kenji Okada, Representative Director; hereinafter “ENEX”). and then we transferred ITOCHU’s shares in the Philippines-based LPG sales business company, Isla Petroleum & Gas Corporation (headquartered in Makati, Philippines; hereinafter “IP&G”; 60% share by Isla Petroleum & Energy, 40% share by ITOCHU) to CREASIA. ITOCHU and ENEX have resolved to undertake further strengthening and expansion of the LPG business in the Philippines by harnessing the combined strength of the ITOCHU Group through CREASIA.
IP&G is a joint venture company established in August 2011 between Isla Petroleum & Energy, the local partner, and ITOCHU for the purpose to acquire Shell’s LPG business in the Philippines. IP&G creates its own brand “Solane” and run the business from LPG import to wholesale and retail. The population in the Philippines exceeded 100 million and the country represents a growth market with expected economic and population growth. Because the Philippines is a country comprising a lot of islands, 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. As well as targeting households, IP&G is also active in promoting LPG for commercial uses such as at shopping malls, fast food chains and hotel restaurants. They are also pitching to industrial users including Japanese manufacturers.
Combining ITOCHU’s knowledge in overseas trading and management and ENEX’s familiarity with LPG wholesaling and retailing, CREASIA will develop the corporate value of IP&G.
ITOCHU handles about five million tons of LPG each year and has been marketing to mainly Japan, China, South Korea, India, Indonesia, Thailand and the Philippines. Demand for LPG is expected to increase significantly in Asian countries so that ITOCHU and ENEX will make full use of the combined strength of the ITOCHU Group to expand business in those areas and to deploy trading activities.
Overview of CREASIA
|Company Name||CREASIA Energy Co., Ltd.|
|Shareholders||ITOCHU Corporation: 60%, ITOCHU ENEX: 40%|
|Activities||Investments associated with overseas oil and LPG businesses|
Shape of Investment Before the Establishment of CREASIA
Shape of Investment After the Establishment of CREASIA