SET-listed Scan Inter (SCN), a compressed natural gas seller and clean power operator, believes its two Japanese partners will help it increase sales of compressed natural gas under the Thai-Japan Gas Network (TJN) joint venture.
The company made a 51% investment in TJN, with the remaining 49% funded by Shizuoka Gas Co, a large gas company in Japan.
TJN restructured its shareholdings by transferring Shizuoka's shares to Thai ST Energy Investment Co, a joint venture where Shizuoka holds a 51% stake and Toho Gas 49%.
This led to cooperation between SCN, Shizuoka and Toho Gas.
Littee Kitpipit, chief executive of SCN, said he expects the business networks of Shizuoka and Toho Gas to increase SCN's sales of industrial compressed natural gas, also called "iCNG", to factory operators.
Toho Gas is a natural gas company based in Nagoya, supplying gas to the Chukyo metropolitan area in the Tokai region. Its business includes gas distribution and sales of equipment related to natural gas.
The company, with a market capitalisation of US$2 billion, generated $4.18 billion in revenue last year.
Partnering with Toho Gas will benefit SCN because the Japanese firm has over 100 years of experience in the gas business, said Mr Littee.
He expects Toho Gas to support a plan to add value to SCN's business and further expand gas sales in Thailand.
This year, SCN already increased its iCNG sales under TJN to 5,000 metric million British thermal units (MMBTU) per day, up from 500 MMBTU per day last year.
The company expects its iCNG business to enjoy continual growth, thanks to purchase contracts with its gas buyers.
Cooperation with Toho Gas is part of SCN's efforts to increase iCNG sales volume to 10,000 MMBTU per day by 2024.
Toho Gas said in a statement it plans to venture into natural gas sales for industrial use in Thailand, which will be its first overseas business operation.
SCN announced earlier it expects total revenue to grow by 20% next year, driven by the rooftop solar panel business, the Minbu solar farm in Myanmar, and medical-grade products made of hemp.
The 50-megawatt Minbu solar farm was acquired by SCN in 2020 and is operated by its subsidiary Green Earth Power Thailand Co.