Atlantic, Gulf & Pacific International (AG&P), through its City Gas Distribution (CGD) business in India, has received investment of up to $120m.
AG&P CGD HoldCo SPV3 (Singapore) (AG&P City Gas) received the investment from Japanese consortium Osaka Gas Singapore, an affiliate of Osaka Gas, and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN).
Singapore-based AG&P City Gas is engaged in developing 12 city gas distribution networks in India under the AG&P Pratham brand name.
AG&P City Gas plans to use the new equity to continue to implement build-out of its exclusive concessions in the Asian country.
The investment is also expected to help AG&P in accelerating expansion of its LNG platform and infrastructure development portfolio.
AG&P chairman and CEO Joseph Sigelman said: “The stability and strength of JOIN and the technical and commercial expertise of Osaka Gas and its long history in city gas will accelerate the smart deployment of our network across our concessions in India.
Sigelman said: “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.”
Osaka Gas said that the investment, which marks its entry in the Indian urban gas distribution market, forms part of its overseas expansion plan, according to Reuters.
Osaka Gas Asia Energy Business Department senior general manager Katz Sato said: “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% of Osaka Gas’ recorded gas sales volume last year on a non-consolidated basis.”
This is the second investment received by AG&P City Gas in four months. The first $200m investment was received from I Squared Capital in August.