BP Gas Stops Business Operation in Vietnam

BP Gas will stop its business operation in Vietnam from January 15 next year, a BP's representative said, adding that local agents have to return empty gas cylinders trademarked BP to the company until July 15, 2009.

 

The company, set up in 1998, said it was not making enough money in Vietnam because its gas canisters were being stolen and refilled illegally. 

 

Early 2006, Exxon Mobil Unique Gas, a unit of US oil giant ExxonMobil, sold all its production facilities in Vietnam to Malaysian oil and gas company Petronas. Last year, Taiwan’s UP Gas filed for bankruptcy and exited the market.

 

Operating costs of foreign LPG producers are US$30-US$60 per tons higher than local rivals, leading to the higher retail prices of VND20,000-VND30,000 per cylinder compared to domestic companies. This is the reason why local consumers are not interested in foreign gas products.

 

There are 80 LPG companies trading in LPG nationwide. Many of them are foreign giants, including Shell, Elf-Total, Petronas, Picnic and PTT. (Urban & Economy)