Osaka Gas, Sumitomo and JOIN to invest in expanding city gas distribution business in India

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 India, following the first one in 2021. OGS intends to establish a medium- to long-term revenue stream in India while contributing to a stable supply of low-carbon energy.

This investment allows AG&P LNG Marketing to expand its gas distribution coverage in India. Since 2021, the company has been developing CGD business in 12 geographical areas (GAs) under the brand name AGP Pratham, primarily in the suburbs of southern India. With this new investment, AG&P LNG Marketing will also develop seven additional GAs under the brand name THINK Gas2 in the urban areas of north and central India. The total area of these nineteen GAs represents approximately 320 000 km² or 10% of the country (comparable to approximately 90% of Japan’s land).

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 India to more than half the gas sales volume of Osaka Gas in Japan.

The Indian government is promoting the use of natural gas, 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.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/15042024/osaka-gas-sumitomo-and-join-to-invest-in-expanding-city-gas-distribution-business-in-india/