Osaka Gas Invests in AG&P International Holdings
Japan’s Osaka Gas, in conjunction with the Japan Bank for International Cooperation (JBIC), has made equity investment in AG&P International Holdings, a part of Philippines-based AG&P Group, it said July 22 without offering any financial details. An official from AG&P that NGW spoke to did not disclose the precise number but said that the investment could be to the tune of $100mn.
The Japanese utility has also entered into a collaboration agreement specific to AG&P International Holdings and its natural gas value chain.
“With this investment and entry into a collaboration agreement, there will continue to be synergy from the project development know-how and engineering skills that the AG&P Group has in LNG businesses as well as the knowledge that Osaka Gas has accumulated domestically for LNG and gas pipelines,” it said.
Osaka Gas and AG&P plan to develop LNG terminal, power plant and LNG supply businesses to create a natural gas value chain in southeast Asia and other countries.
AG&P in a separate statement said that the capital raised by the stake sale will be used to execute its multiple initiatives worldwide, including the development and roll-out of city gas distribution business in India and LNG import terminals, such as its pending terminals in Karaikal, India, among others.
“In addition to providing growth capital, Osaka Gas will also work with AG&P in other areas, including technical support, such as providing technical collaboration for AG&P’s major city gas initiatives in India where AG&P is commencing its build-out of 12 concessions that cover many millions of people across a wide swathe of south India and Rajasthan. Given over 110 years of Osaka Gas’s heritage, we are extremely eager to see this clean energy made available quickly and safely to the citizens of India who live in these geographic areas,” said Katz Sato, head of south and east Asia business development for Osaka Gas.
Osaka Gas has been gradually expanding its business in southeast Asia. The company is already present in Singapore, Thailand, and Indonesia. Last month, Osaka Gas and Sojitz Corporation agreed to form a joint venture to supply natural gas to industrial customers in Vietnam. This new venture also marks the third country, following on Singapore, and Thailand, for their engagement in natural gas supply work overseas.