March 4, 2019
AG&P is one of two foreign firms to win the critical contracts to deliver natural gas directly to residential, commercial, industrial and transport sectors
The gas distribution licenses are based out of some of India’s most populous states - Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Rajasthan
The auction, which offered 50 licences, saw Indian Oil and Hindustan Petroleum, Gujarat Gas, Gail Gas, Torrent Gas, among others, pick up licences
AG&P’s 25-year exclusive rights covers activities related to gas pipelines to residential customers, commercial entities as well as CNG stations for vehicles
Atlantic Gulf & Pacific Company of Manila (AG&P) is looking to invest around US$1.4 billion in its Indian gas business over the next eight years, as per news reports on March 4, citing a company statement. The investment plan comes after the Philippines-based global gas logistics company won nine licenses in the 10th round auction of City Gas Distribution (CGD) concessions by Petroleum & Natural Gas Regulatory Board (PNGRB). AG&P was one of two foreign firms to win the contracts to deliver natural gas directly to residential, commercial, industrial and transport sectors in some of India’s most populous states – Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, and Rajasthan.
AG&P’s 25-year exclusive rights cover gas pipelines to residential customers, commercial entities as well as CNG stations for vehicles. The company said that it was planning to build CNG stations, supported by pipelines and delivery of LNG by truck. The concerned markets are home to the automobile, chemical, glass, steel, food and pharmaceutical industries as well as major commercial centres. AG&P’s contract win will bring in foreign investment, while generating new jobs. It said that while cheaper natural gas will be made available by the Indian Government for domestic and vehicular needs, commercial and industrial sector needs will be met through imported LNG supplies,
The 10th round auction, which offered 50 licences, also saw Indian Oil and Hindustan Petroleum win nine markets each. Other licence winners included Gujarat Gas (six), Gail Gas (four), Indraprastha Gas (three), Torrent Gas (three), Adani (two) and Bharat Petroleum (two). In the 9th round of auction last year, AG&P had won three other licences. With this win, AG&P has emerged as a leading LNG player in south India. AG&P is looking to tap 12 million domestic customers, while setting up 1,500 CNG stations and 17,000 km of gas pipeline, PPG Sarma, AG&P’s managing director for CGD and logistics, told Economic Times. India is one of the world’s largest and fastest growing energy markets.