Osaka Gas, JBIC acquire minority stake in AG&P for $100 mn
New Delhi, July 22 (IANS) Japan's Osaka Gas and the Japan Bank for International Cooperation (JBIC) have invested about $100 million in gas multinational AGP International Holdings Pte Ltd (AG&P), the liquified natural gas distribution (LNG) company said on Monday.
AG&P has recently won the license to retail LNG in some Indian cities and plans to build an LNG import terminal on the country's east coast, a company statement said.
"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.
"Osaka Gas Company through its affiliate Osaka Gas Singapore Pte Ltd (Osaka Gas) and the Japan Bank for InternationalACooperation (JBIC) have invested in a minority stake in AG&P," it said.
"This capital will be used to execute AG&P's multiple LNG initiatives worldwide, including the development and roll-out of AG&P's city gas distribution business in India, where 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.
"Small- and medium-scale LNG import terminals, such as AG&P's pending terminals in Karaikal, India and elsewhere, 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 be used to execute LNG applications and logistics, such as LNG delivery to end-customers by different transportation options, the statement added.
According to the Philippines-headquartered firm, 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
JBIC is a corporation wholly owned by the Japanese government.