Osaka Gas, Sumitomo, and JOIN to Invest in Expanding City Gas Distribution Business in India
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Project_Area (Graphic: Business Wire)
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
This investment allows AG&P LNG Marketing to expand its gas distribution coverage in
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
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
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.
About
Under the Medium-Term Business Plan 2026: Connecting Ambitious Dreams,
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Press release on
December 20, 2021 : Osaka Gas Becomes theFirst Japanese Company to Participate in City Gas Distribution Business inIndia - The holding company of AG&P’s CGD business has merged with the holding company of THINK Gas’ CGD business.
- Osaka Gas’ consolidated gas (45 MJ/m3) sales volume in fiscal 2022 was 6.845 billion m3.
-
In
December 2019 , the Indian government announced a goal of increasing the percentage of natural gas as a primary energy source from 6% in 2019 to 15% by 2030.
1. Overview of the city gas distribution business in
(1) Investment structure
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The CGD businesses of
THINK Gas and AG&P are owned by AG&P LNG Marketing. -
AG&P LNG Marketing is owned by
I Squared Capital , AG&P SPV3, and the Japanese consortium. -
Osaka Gas will invest approximatelyUSD 240 million in the Japanese consortium through OGS. -
The Japanese consortium jointly owned by
Osaka Gas , Sumitomo, and JOIN will invest approximatelyUSD 370 million in AG&P LNG Marketing. -
Osaka Gas has held equity in the target company through AG&P SPV3 since 2021, whenOsaka Gas invested in AG&P SPV3 through OGS in 2021, alongside JOIN.
(2) Project Area
- Refer to the graphic "Project Area".
(3) Business operation
- Natural gas/LNG procurement, storage, distribution, sales, demand development.
- Refer to the graphic "Business operation".
2. Company Overview
OGS |
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Company |
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Established |
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Address |
182 |
Representative |
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Main Business |
Research, development, and investment in energy-related businesses, managing and operating businesses in Southeast and |
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Company |
DAIGAS SJ CGD PTE. LTD. |
Established |
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Address |
182 |
Representative |
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Main Business |
Gas distribution in |
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Company |
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Established |
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Address |
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Representative |
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Main Business |
Natural gas and LNG transport, storage, distribution, sales and demand development in 19 GAs in southern, north and central |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240415587093/en/
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