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.

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