Homegrown construction firm Atlantic, Gulf & Pacific International Holdings (AG&P) has secured a $120-million equity investment from Japanese firm Osaka Gas Co. Ltd. to expand its operations in India.
The deal was made through Osaka Gas’ affiliate Osaka Gas Singapore Pte. Ltd. and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development with AG&P CGD HoldCo SPV3 Pte. Ltd. (AG&P City Gas).
In a statement, AG&P said the new equity would be used to expand its business in South India and Rajasthan. It is currently developing 12 gas distribution networks in India under the brand AG&P Pratham.
This makes Osaka Gas the first Japanese company to invest in the city gas sector in India, Osaka Gas senior general manager for Asia energy business department Katz Sato said.
“With exclusive rights for a vast swath of southern India, roughly equivalent to three-quarters of the area of Japan, these 12 concessions are expected to generate over time a demand of 3.5 billion cubic meters in gas sales volume, or approximately 50 percent of Osaka Gas’ recorded gas sales volume last year on a nonconsolidated basis,” he added.
This latest investment is seen to accelerate AG&P’s liquefied natural gas (LNG) and infrastructure development portfolio at a time when natural gas is being recognized as a transition fuel going into renewables.
This is the second investment that AG&P City Gas has received in four months, bringing its total equity infusion to over $300 million.
AG&P started its operations in the Philippines and has since grown into one of the biggest LNG and gas distribution and logistics companies.
It owns and operates a 100-hectare heavy fabrication and assembly yard on Batangas Bay as well as an LNG terminal in Batangas.