MANILA, Philippines — Atlantic Gulf and Pacific Company (AG&P) has secured a $120-million equity investment from Japanese consortium Osaka Gas Co. Ltd. and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) to develop 12 city gas distribution networks in India.
In a statement, AG&P said the $120-million investment by Osaka Gas, through affiliate Osaka Gas Singapore Pte. Ltd., and JOIN would be invested in Singapore-based AG&P CGD HoldCo SPV3 (Singapore) Pte. Ltd. (AG&P City Gas).
The new equity will be used to continue to execute the build-out of AG&P City Gas’ 12 exclusive concessions in South India and Rajasthan under the brand name AG&P Pratham.
The AG&P network is expanding to reach millions of people with clean fuel, including compressed natural gas (CNG) for their vehicles and piped natural gas (PNG) in their homes, as well as provide fuel for large and small industrial and commercial customers.
AG&P chairman and CEO Joseph Sigelman said the technical and commercial expertise of Osaka Gas, which is an existing investor in AG&P’s parent, and the stability and strength of JOIN “would accelerate the smart deployment of our network across our concessions in India.”
“Most importantly, this partnership comes at a time when natural gas is being recognized as the critical transition fuel that will have a profound impact on the reduction of carbon, NOX, SOX and particulates, which not only contribute to climate change, but also to the ill health of thousands of Indians each year. We look forward to a network that can have such a major impact,” he said.
Osaka Gas senior general manager for Asia Energy Business Department Katz Sato said they are the first Japanese company to invest in the city gas sector in India through AG&P City Gas.
“It marks a milestone in a long-term relationship where AG&P and Osaka Gas have worked together to develop LNG infrastructure projects in South Asia and Southeast Asia, among others,” he said.
Sato said the investment in AG&P City Gas would provide the company with a valuable asset, which it will develop into one of its core businesses in Asia.
“With exclusive rights for a vast swath of southern India, roughly equivalent to three-quarters of the area of Japan, these 12 concessions are expected to generate over time a demand of 3.5 billion m3 in gas sales volume, or approximately 50 percent of Osaka Gas’ recorded gas sales volume last year on a non-consolidated basis. We are very privileged to work with our long-time partner AG&P and make this clean energy available quickly and safely to the citizens of India who live in these areas,” he said.
Meanwhile, JOIN managing executive officer and project department head Toshiyuki Suzuki said the consortium’s investment will help expedite the roll-out of the vital gas network, LNG storage and transportation solutions being built in India by AG&P City Gas.