OREANDA-NEWS. Tokyo Gas Co., Ltd. Wholly owned subsidiary Energy Advance Co., Ltd. concluded an agreement to establish a joint venture company (gas malaysia – energy Advance Sdn. Bhd.) to develop the energy service business in Malaysia together with Gas Malaysia Berhad (“Gas Malaysia”).

The New Company will have capital of 4 million Malaysian ringgits (investment ratios: Energy Advance – 34%; Gas Malaysia – 66%), and is scheduled to be established in March.

The New Company will make use of the gas cogeneration system and other energy service business sales and administration know how that Energy Advance has cultivated in Japan and Gas Malaysia’s supply infrastructure and customer base for the gas supply business inside Malaysia to develop the energy service business in that country. The New Company will work to secure wide-ranging customers targeting local factories and other users including Japanese-affiliated enterprises, and to expand business.

Tokyo Gas established Gas Malaysia, which was the first city gas company in that country, together with the national oil company PETRONAS in May 1992, and provided its ample experience, technology, and knowledge regarding gas business administration when launching the business.

Gas Malaysia has maintained stable operations and growth ever since, and contributed to that country’s sustainable development through stable supply and promotion of the spread of natural gas, which is environmentally friendly. Tokyo Gas presently owns 14.8% of Gas Malaysia’s stock through its subsidiary.

Malaysia’s economy remains strong with the advance of industrialization and abundant natural resources. Further progress is projected in the future as well with continued robust electric power and gas energy demand, and the location of factories and commercial facilities by Japanese-affiliated enterprises.

Amid these developments, agreement was reached on the intentions of the Tokyo Gas Group, which is advancing the overseas development of our energy service business under Challenge 2020 Vision, and of Gas Malaysia, which seeks to expand the foundations of its gas supply business through the provision of new customer services, leading to conclusion of the agreement. This is the Tokyo Gas Group’s second participation in the energy service business overseas, following Brazil.

The Tokyo Gas Group will continue to develop our energy service business overseas with natural gas which can make use of the Group’s strengths at the core, and to contribute to energy conservation and CO2 emissions reductions in newly industrializing economies and to the overseas business development of Japanese enterprises.