Osaka Gas, JBIC invest $100 million to take minority stake in AG&P

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Published: July 22, 2019 5:37:19 PM

"AG&P has won long-term, exclusive concessions to connect millions of people to compressed natural gas (CNG) for their vehicles and piped natural gas (PNG) directly into their homes across South India and Rajasthan," it said.

Osaka Gas, JBIC, minority stake, AG&P, industry news, CNG, compressed natural gas, LNG import terminals,LNG, piped natural gas, PNGThe capital would also go into LNG applications and logistics, such as LNG delivery to end-customers by different transportation options.

Japan’s Osaka Gas and JBIC have invested about USD 100 million in AG&P, which recently won a license to retail gas in some Indian cities and has plans to build an LNG import terminal on the east coast. “AGP International Holdings Pte Ltd (AG&P) has received a major equity investment from two Japanese institutions to support AG&P’s success in innovating and disrupting the global natural gas value chain,” the company said in a statement.

Osaka Gas Co Ltd, through its affiliate Osaka Gas Singapore Pte Ltd (Osaka Gas), and the Japan Bank for International Cooperation (JBIC) have invested in “a minority stake in AG&P,” it said without saying the quantum of equity stake picked up by the two. AG&P said the capital will be used to execute multiple initiatives worldwide, including the development and roll-out of its city gas distribution business in India.

“AG&P has won long-term, exclusive concessions to connect millions of people to compressed natural gas (CNG) for their vehicles and piped natural gas (PNG) directly into their homes across South India and Rajasthan,” it said.

Also, the capital would go into setting up “small and medium-scale LNG import terminals, such as AG&P’s pending terminals in Karaikal… that will provide the vital link to bring commercially attractive, convenient and safe gas to population centers that today rely on dirtier and more expensive fuels”.

The capital would also go into LNG applications and logistics, such as LNG delivery to end-customers by different transportation options.
“We are humbled and privileged by the trust that both Osaka Gas and JBIC have placed in AG&P. These are amazing institutions that possess tremendous expertise and experience in their respective fields. We have a great responsibility to work very hard for them and our other shareholders to continue to grow AG&P’s unique business model that captures a large portion of the LNG value chain after the molecule has been shipped,” said Jose P Leviste Jr, Chairman AG&P.

Osaka Gas, the 114-year old, vertically integrated energy utility in Japan with revenues of USD 12 billion, is one of the world’s foremost gas utilities, supplying natural gas to about 5.5 million households and operating over 60,000 km of pipeline. Its investment in AG&P marks the next step in a long-term relationship where both parties have worked together to develop LNG infrastructure projects in South Asia, Southeast Asia, and the Americas, among others, the statement said.

“Osaka Gas has known AG&P since 2014. Since that time, we have come to admire AG&P’s unique ability to disrupt the natural gas value chain in areas such as city gas distribution, LNG import terminals, LNG bunkering, LNG engineering, and advanced manufacturing. We strongly believe that this investment in AG&P will provide Osaka Gas with a valuable asset to create and develop new markets for Osaka Gas,” said Katz Sato, Head of South and East Asia Business Development for Osaka Gas.

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 major city gas initiatives in India, he said. JBIC is an institution wholly owned by the Japanese government.

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