Tokyo Gas and INPEX have reached an agreement that Tokyo Gas Energy, a wholly owned subsidiary of Tokyo Gas mainly running LPG business, and Teiseki Propane, a wholly owned subsidiary of INPEX mainly running LPG business, will merge on 1 July , 2012, becoming effective subject to the approval of Japan Fair Trade Commission.
Through the merger, Tokyo Gas and INPEX aim to increase the corporate value by strengthening the management basis of TG Energy, the successor company, with more efficient business operations to be brought by the integration of highly complementary companies, TG Energy and Tei-Pro from the viewpoint of their market areas and existing supply infrastructure.
Furthermore, Tokyo Gas and INPEX will try to realize the strategic LPG business in the future by organically coordinating the following items No.1 to No.3 below.
No.1: Stable supply of feed LPG from the upstream LPG projects owned by INPEX
No.2: Loading business at the LPG loading terminals owned by Tokyo Gas and TG Energy
No.3: LPG retail and wholesale business owned by TG Energy and Tei-Pro.
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LNG World News Staff, April 6, 2012; Image: iStock