AG&P to develop city gas projects in India's Karnataka state
AG&P Pratham, a unit of Singapore’s AG&P, has signed a memorandum of understanding with the government of the Indian state of Karnataka to develop city gas distribution (CGD) network in 15 districts of the state, the company said on November 3.
Under the MoU, AG&P Pratham will invest 80bn Indian rupees ($970mn) over the next eight years to build CGD networks in districts of Kolar, Mysuru, Mandya, Chamrajnagar, Hassan, Chikkamagaluru, Kodagu, Bagalkot, Koppal, Raichur, Kalaburagi, Vijayapura, Shivamogga, Uttara Kannada and Haveri.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The area being developed by AG&P accounts for more than 55% of the state's geographical area and 42% of its population. Over the next eight years, AG&P plans to supply gas to 5mn households and several industries and commercial establishments. It also plans to set up about 600 compressed natural gas (CNG) stations LNG stations to service the transport sector.
To date, AG&P Pratham has launched 60 CNG and LNG stations in the state, while several such stations are at various stages of development.
AG&P City Gas is developing 12 CGD networks in India under the brand name AG&P Pratham. In its 12 concessions, AG&P is responsible for developing and operating CNG stations for vehicles, PNG to homes, and the distribution of LNG to industrial and commercial customers. City gas projects in India benefit from marketing exclusivity in their designated areas for eight to ten years and construction exclusivity of related infrastructure for 25 years.
Last year, AG&P City Gas received a $120mn investment from Osaka Gas and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development.