Japanese consortium to buy stake in I Squared's India gas platform for $370mn

I Squared Capital, a global infrastructure investor, on April 15 announced that a consortium of Japanese investors will buy a minority stake in Natural Gas Transition Platform, a Singapore-based holding company that invests in city gas distribution networks in India for $370mn.  

The Japanese investor consortium is made up of utility Osaka Gas, trading firm Sumitomo Corporation, and the Japan Overseas Infrastructure Investment Corporation (JOIN), a government-sponsored entity that promotes Japanese investment abroad.

“India aims to boost the share of natural gas from nearly 7% currently to 15% of the primary energy mix by 2030. I Squared Capital, through the Natural Gas Transition Platform, is committed to supporting a just and equitable transition of the country’s energy sector. Our new partners, Osaka Gas, Sumitomo Corporation and JOIN share this ambition and together we will be working to facilitate the shift from more carbon-intensive fossil fuels to natural gas in India," said Harsh Agrawal, senior partner, APAC, I Squared

Natural Gas Transition Platform currently holds investments in Think Gas and AG&P Pratham, leading last-mile city gas distribution businesses in India. These companies are developing city gas infrastructure across 19 geographical areas, serving a population exceeding 85mn.

In addition to gas distribution, the Platform will increase investments to boost the consumption of renewable natural gas (biogas) in India. It is already one of the largest procurers of biogas in India and aims to procure about 5mn tonnes over the next 25 years, I Squared said. 

India last year announced a phased mandatory blending of CBG in CNG and domestic piped natural gas (PNG) segments starting the fiscal year 2025-26. This move is aimed at reducing reliance on traditional fossil fuels, promoting sustainable energy sources, and achieving net zero emission goals.