Eric Watkins
Senior Correspondent
LOS ANGELES, Nov. 29 -- Mitsui & Co., Sumitomo Corp., and Marubeni Corp., all of Japan, are reported to be negotiating to form an alliance by yearend for the joint procurement of liquid petroleum gas (LPG), operation of tankers to carry it, and eventual consolidation of their respective distribution and storage facilities.
The companies apparently view their proposed alliance as a way of strengthening their operations, as competition is increasing among Japan's 20 or so LPG wholesalers due to shrinkage of the wholesale market and a doubling of the cost of supplies from Middle East producers.
Marubeni operates its LPG business indirectly through Marubeni Liquefied Gas Inc, while Mitsui imports and sells LPG through Mitsui Liquefied Gas Co. Sumitomo imports LPG directly and sells it through Sumisho LPG Holdings Co.
Contact Eric Watkins at [email protected].
