Osaka Gas, Sumitomo & JOIN to Invest in Expanding City Gas Business in India

Source: www.gulfoilandgas.com 4/15/2024, Location: Asia

Osaka Gas Co., Ltd. (Osaka Gas) announced on April 8 its subsidiary OSAKA GAS SINGAPORE PTE. LTD. (OGS) has reached an agreement with Sumitomo Corporation (Sumitomo) and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) to 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.

This investment will be made through a Japanese consortium jointly owned by OGS, Sumitomo, and JOIN. This marks OGS’ second major investment in the CGD business in India, following the first one in 2021. OGS 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. Since 2021, the company has been developing CGD business in twelve geographical areas1 (GAs) under the brand name AGP Pratham, primarily in the suburbs of southern India. With this new investment, AG&P LNG Marketing will also develop seven additional GAs under the brand name THINK Gas2 in the urban areas of north and central India. The total area of these nineteen GAs represents approximately 320,000 km2 or 10% of the country (comparable to approximately 90% of Japan’s land).

AG&P LNG Marketing 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’s goal is to grow its gas sales volume in India to more than half the gas sales volume of Osaka Gas in Japan.

AG&P LNG Marketing is led by an experienced management team that has demonstrated quality execution and 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 (an independent global infrastructure investment manager focusing on energy, utilities, telecom and transport in the Americas, Europe, and Asia), AG&P Group, Osaka Gas, Sumitomo (each of whom has taken on many overseas natural gas projects), and JOIN (a public-private infrastructure fund who supports Japanese businesses for overseas infrastructure projects with their knowledge, expertise, and technology). In addition, Osaka Gas will provide technical and sales support.

The Indian government is promoting the use of natural gas,4 such as increasing the number of vehicles powered by compressed natural gas (CNG vehicles) by developing city gas distribution networks to meet the rising energy needs and reduce carbon emissions and air pollution as the country's economy is growing. City gas suppliers are selected in a bidding process for each GA and given exclusive gas sales and infrastructure rights (exclusive business rights) for an agreed period.


United States >>  5/24/2024 - Runwise was celebrated for outstanding achievements in energy efficiency by National Grid. National Grid awarded certain ProNet partners with GridEE a...
Lithuania >>  5/21/2024 - AB Amber Grid, legal entity code 303090867. Address: Laisves pr. 10, LT-04215 Vilnius.

On 20 May 2024, the Board of Amber Grid approved the...


Uzbekistan >>  5/21/2024 - A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Jurabek Mirzamakhmudov, Minister of Energy of the Republic ...
United States >>  5/20/2024 - 11.7% equity stake in Phase 1 of Rio Grande LNG marks ADNOC’s first strategic investment in the US and complements its efforts to expand its lower-car...

Australia >>  5/17/2024 - Central Petroleum Limited, the Operator of Cue Energy’s (Cue) onshore Australian gas production fields, Mereenie, Palm Valley and Dingo, has issued t...
Australia >>  5/17/2024 - Central Petroleum Limited, the Operator of New Zealand Oil & Gas Limited’s (NZO) Amadeus Assets (Mereenie, Palm Valley and Dingo) has issued the atta...




Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.