Japanese energy utility Osaka Gas Co. and the Japan Bank for International Cooperation (JBIC) have invested $100 million for a minority stake in AG&P, the manila-based firm that has recently obtained 12 city gas distribution licenses in India.
The funds will be used to execute AG&P’s multiple liquefied natural gas (LNG) initiatives worldwide, including the development and roll-out of city gas distribution business in India, and the proposed LNG terminal in Karaikal, Puducherry, AG&P said in a statement.
“In addition to providing growth capital, Osaka Gas will also work with AG&P in other areas, including technical support, such as providing technical collaboration for AG&P’s major city gas initiatives in India where AG&P is commencing its build-out of 12 concessions that cover many millions of people across a wide swathe of South India and Rajasthan,” said Katz Sato, Head of South and East Asia Business Development for Osaka Gas.
AG&P plans to invest Rs 10,000 crore in its city gas business over eight years in the country, the company had earlier said. It is also planning to ready a floating LNG storage unit in Puducherry by the end of next year.