MANILA, July 15 (PNA) — The Cosco Capital Inc will enter the gas industry with a bang, after announcing the upcoming purchase of the 90 percent stake of Liquigaz Philippines Inc.
According to a disclosure from the Philippine Stock Exchange (PSE) on Tuesday, Cosco Capital will be owning 90 percent of Liquigaz Philippines Inc in a few days, while PR Gaz Inc will retain its 10 percent total share.
”The acquisition marks Cosco’s entry into liquefied petroleum gas (LPG) business with a strong initial presence in the upstream business,” said Cosco Capital Inc President Leonardo Dayao.
Liquigaz Philippines Inc is the largest supplier of liquefied petroleum gas (LPG) in the Philippines, holding a 30 percent total market volume, with its dominance centered in Luzon.
Moreover, 60 percent of the country’s annual LPG importation is found in Liquigaz’s 12,500 metric tons storage tanks in Mariveles, Bataan.
It is considered the largest in the Philippines, with a supreme ability of receiving both refrigerated and pressurized LPG cargo, which cannot be done by other facilities.
Currently, Liquigaz handles the wholesaling portion of the market, in which 85 percent of its trading volume goes directly to refillers and distributors.
Meanwhile, the 15 percent remainder is sold to commercial consumers like restaurants, hotels, fast food outlets, hospitals, supermarkets and autogas stations.
Further, the company is also considering to enter the downstream retail business soon either through mergers and acquisitions of existing re-fillers or the establishment of its own re-filling network, along with the goal of retailing directly to the household market.
Cosco Capital Inc, a holding company, owns Puregold Price Club Inc, a leading wine and spirits distributor, real estate developer and an oil storage facility. (PNA)