AG&P Raises Funds for India City Gas Projects
AGP CGD India, a subsidiary of Singapore-based AG&P Group, has entered into a rupee 5.18bn ($72.2mn) term loan agreement with India’s L&T Infrastructure Finance Company, it said January 9. These funds will be used to develop the city gas distribution (CGD) networks in Jodhpur, Barmer, Jaisalmer and Ramanathapuram.
AG&P CGD holds the exclusive licenses to build CGD networks to sell natural gas in Jodhpur, Barmer and Jaisalmer in the western Indian state of Rajasthan and Ramanathapuram in the southern state of Tamil Nadu. AG&P CGD holds ten other CGD licenses across India. The company will supply compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for homes and businesses.
In total, AG&P CGD secured twelve 25-year CGD licenses from the government of India’s Petroleum & Natural Gas Regulatory Board (PNGRB) in the 9th and 10th rounds of bidding. These licenses allow AG&P CGD to supply natural gas to 12 areas covering 28 districts in Andhra Pradesh, Karnataka, Kerala, Rajasthan and Tamil Nadu, making the company the largest foreign player in India’s rapidly developing CGD sector, it said. AG&P CGD is building over 1,500 CNG stations, supported by 1,800-km of steel pipelines.