Home / Industry / Energy /  AG&P secures $300 mn from I-Squared

Singapore-headquartered Atlantic, Gulf and Pacific Company (AG&P), which has exclusive rights to develop the city gas distribution (CGD) infrastructure and supply gas in 31 districts across five states, has secured $300 million from US-based I Squared Capital, according to an official aware of the development.

The company will use the funds to expand its CGD network in India.

AG&P declined to comment on the development.

I Squared Capital’s arm Think Gas is also in the race to buy the government’s stake in state-run Bharat Petroleum Corporation Ltd. Other interested players include mining-to-oil conglomerate Vedanta and private equity firm Apollo Global.

AG&P’s CGD business in India, AG&P Pratham, distributes liquefied natural gas (LNG) from its terminals to end-users across the power, industrial, commercial, dom-estic and transport sectors.

AG&P holds 25-year exclusive rights from the Petroleum and Natural Gas Regulatory Board (PNGRB) to develop CGD infrastructure and supply gas in more than 278,000 sq. km area across Rajasthan, Kerala, Andhra Pradesh, Karnataka and Tamil Nadu. This will involve setting up more than 1,500 compressed natural gas (CNG) stations and 17,000 inch-km of pipelines.

“AG&P is bullish on India’s CGD segment. Given the under-penetration of natural gas as a fuel in the Indian market, the company wants to expand in all areas of gas distribution," said a senior official on the condition of anonymity.

In February, AG&P signed a memorandum of understanding (MoU) with the Tamil Nadu government for the supply of natural gas across six districts of the state under its AG&P Pratham brand. AG&P plans to invest 2,700 crore over eight years to build CGD networks in Kanchipuram, Chengalpattu, Vellore, Ranipet, Thirupathur and Ramanathapuram districts.

The company plans to supply piped natural gas (PNG) to 2 million households, 10,000 commercial establishments and 150 industrial enterprises and will operate more than 200 CNG stations across the state, AG&P had said in February.

AG&P also owns and operates the Karaikal LNG import facility at Karaikal Port, Puducherry. The facility will have an initial capacity of one million tonnes per annum (mtpa) and is expected to commence commercial operations by Q4 2021.

The company also plans to set up 50 CNG stations in Jodhpur, Barmer and Jaisalmer in Rajasthan and provide more than 200,000 households with PNG.

AG&P’s plans also get a fillip from India’s push to a gas-based economy. As of March, India’s petroleum regulator has authorized 33,764 km of natural gas pipeline network for the country’s gas grid.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout