BUSINESS

OSAKA GAS IN INVESTMENT DEAL TO EXPAND CITY GAS DISTRIBUTION BUSINESS IN INDIA

16/04/2024 12:34 PM

KUALA LUMPUR, April 16 (Bernama) -- Osaka Gas Co Ltd (Osaka Gas) announced its subsidiary Osaka Gas Singapore Pte Ltd (OGS) will invest in AG&P LNG Marketing Pte Ltd (AG&P LNG Marketing), aiming to boost AG&P LNG Marketing’s city gas distribution (CGD) business in India.

An agreement has been reached with Sumitomo Corporation (Sumitomo) and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) for the investment, according to Osaka Gas in a statement.

This investment will be made via a Japanese consortium jointly owned by OGS, Sumitomo, and JOIN which marks OGS’ second major investment in the CGD business in India, and it intends to establish a medium- to long-term revenue stream in India while contributing to a stable supply of low-carbon energy.

This investment allows AG&P LNG Marketing to expand its gas distribution coverage in India as it has been developing CGD business in 12 geographical areas (GAs) under the brand name AGP Pratham, primarily in the suburbs of southern India, since 2021.

With this new investment, AG&P LNG Marketing will also develop seven additional GAs under the brand name THINK Gas in the urban areas of north and central India. The total area of these 19 GAs represents approximately 320,000 square kilometre of the country.

It plans to construct compressed natural gas (CNG) stations and extend its gas distribution networks further, aiming to increase gas sales mainly in the transportation segment as well as household, commercial, and industrial segments.

AG&P LNG Marketing is led by an experienced management team that has demonstrated quality execution and operations and maintenance (O&M) of the company’s assets.

The management will be guided by a competent board of directors which will have representation from I Squared Capital, AG&P Group, Osaka Gas, Sumitomo and JOIN, in addition to Osaka Gas that will provide technical and sales support.

-- BERNAMA


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