Japan’s Osaka Gas in India move

Japan’s city gas supplier and LNG importer Osaka Gas is entering India’s city gas distribution market as part of its plans to expand its overseas businesses.

Osaka Gas has invested, together with Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), in a unit of Singapore’s LNG firm AG&P, according to a joint statement. Osaka Gas is already a shareholder in AG&P.

JOIN and Osaka Gas Singapore will invest up to $120 million in Singapore-based AG&P CGD HoldCo SPV3 that is developing twelve city gas distribution networks, or concessions, in South India and Rajasthan under the brand name AG&P Pratham.

Besides AG&P, US-based I Squared Capital Advisors also participates in AG&P CGD.

In August 2021, AG&P City Gas received $ 200 million from I Squared Capital. Combined with the investment from the Osaka Gas and JOIN consortium, the total equity infusion available for AG&P City Gas is over $300 million, the statement said.

With this move, Osaka Gas becomes the first Japanese company to participate in the city gas distribution (CGD) sector in India.

The venture aims to develop into a business in a scale of 3.5 billion cbm in gas sales volume, which is about half of Osaka Gas’ city gas sales volume in Japan, it said.

Also, the venture plans to promote city gas demand for CNG vehicles as well as for household, commercial, and industrial uses, and utilize LNG trucks as one of the main gas supply system, the statement said.

Most Popular

Canada’s Cedar LNG names FLNG

Canada’s Cedar LNG, a joint venture of Canada’s Pembina Pipeline and the Haisla Nation, has picked a name for its floating LNG facility, which will be located in the traditional territory of the Haisla Nation, on Canada’s West Coast.

NextDecade, Jera seal 20-year LNG SPA

Japan's Jera has signed a 20-year deal to buy liquefied natural gas from the planned fifth train at NextDecade's Rio Grande LNG facility in Texas.

Australia’s Viva Energy gets OK for Geelong LNG import terminal

Australia’s Viva Energy has secured approval from the Victorian government for its proposed FSRU-based LNG import terminal in Geelong, Australia.

More News Like This

Spain’s Sagunto LNG terminal gets 1000th cargo

Spain’s Sagunto liquefied natural gas import terminal near Valencia has received its 1000th cargo onboard Latsco's LNG carrier Hellas Athina.

Nebula’s AG&P LNG, Indonesia’s PLN EPI form JV

Nebula Energy’s AG&P LNG has formed a 20-year joint venture with PT PLN Energi Primer Indonesia (PLN EPI) and partners to develop LNG infrastructure for the Sulawesi-Maluku power plant gasification project.

Japan’s Osaka Gas, partners to build LNG power plant

The CCGT unit will use regasified LNG as fuel, but it will also be able to consume e-methane in...

Adnoc, Osaka Gas finalize Ruwais LNG supply deal

UAE's Adnoc has signed a 15-year sales and purchase agreement with Japan’s Osaka Gas to supply the latter with liquefied natural gas from its LNG terminal in Al Ruwais.