Total Petroleum Philippines Corp. (TPPC) is eyeing more acquisitions as it continues on its bid for a sizable share in the country's liquefied petroleum gas (LPG) market. "We are still open to making one or two more acquisitions of existing players in the LPG market," said TPPC president and managing director Jean Jacques Jung.
Jung pointed out that since 1998 the LPG market has registered significant growth despite the poor showing of the Philippine economy.
"At that time, the other petroleum products were not doing well," he said.
TPPC acquired last month, eight-year old Camping Gaz Philippines for something like $5 million.
Camping Gaz, a part of Application des Gaz of France, has a yearly sales volume of 10,000 metric tons of outdoor cooking paraphernalia principally used for camping and mountain climbing. The cylinders come in 2.7 and 5.5 kilogram (kg) categories.
Meanwhile, TPPC has established 200 outlets throughout Metro Manila. Its LPG brand in the market is known as Totalgaz.
"The acquisition is seen not only to strengthen Total's foothold in the LPG market but also reinforces the company's position in the entire local oil industry," the TPPC chief executive said.
In a joint venture with Pilipinas Shell Petroleum Corp. (Pilipinas Shell) in November last year TPPC acquired a 15-percent equity worth $10 million in Shell Gas Eastern Inc. Shell Gas Eastern operates an LPG import and storage terminal in Tabangao, Batangas. It has a 50,000-metric ton storage capacity said to be one of the biggest in the Philippines.
Major oil firms Petron Corp., Caltex Philippines Inc., and Pilipinas Shell are the leading players in the LPG industry.
In Luzon, the market leaders are Liquigaz, Manila Gas, and Totalgaz. In the Visayas and Mindanao area, it is reportedly Petronas and Pryce Gas.