KUALA LUMPUR, Dec 20 (Bernama) -- Osaka Gas Co Ltd (Osaka Gas) has announced participation in the City Gas Distribution (CGD) business in India through its wholly-owned subsidiary Osaka Gas Singapore Pte Ltd (OGS) by investing in AG&P CGD HoldCo SPV3 (Singapore) Pte Ltd (AG&P SPV3), together with Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN).
AG&P City Gas is developing the 12 CGD geographical areas it was awarded in South India and Rajasthan. Osaka Gas is the first Japanese company to participate in the CGD sector in India through this investment.
Based on a statement, as a successful bidder for the city gas development projects supported by the Government of India, AG&P City Gas obtained exclusive gas sales rights and infrastructure ownership rights (exclusive rights) in India for a fixed period of time for its 12 concessions.
India promotes greater use of natural gas through the development of city gas infrastructure that supports the wider use of compressed natural gas vehicles (CNG vehicles) in response to the increasing energy demand and a need to reduce carbon emissions and air pollution resulting from economic growth in the country.
This city gas venture has been developed by the AG&P Group led by AGP International Holdings Pte Ltd (AGPIH), AG&P SPV3’s parent company, in which Osaka Gas also invests in.
With exclusive rights for a vast swath of southern India, roughly equivalent to ¾ the area of Japan, the venture aims to develop into a business in a scale of 3.5 billion m³ in gas sales volume, which is approximately half of Osaka Gas’ city gas sales volume in Japan.
The venture also plans to promote city gas demand for CNG vehicles as well as for household, commercial, and industrial uses, and utilise LNG lorries as one of the main gas supply system, which is introduced for the first time to India, to reduce the time for the development and roll-out of the city gas infrastructure.
AG&P CGD, the operator of this city gas business, is jointly owned by AGPIH, the leading downstream LNG platform and infrastructure development company.
Osaka Gas has been expanding its business of gas distribution, gas sales to industrial customers, energy services, rooftop solar power generation in Southeast Asia.
-- BERNAMA
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