Global infrastructure investor I-Squared Capital-backed city gas distribution (CGD) firm AG&P Pratham looks to invest up to Rs 80 billion in expanding city gas network across India in the next three years, sources familiar with the development said.
CGD is the process of transporting or distributing natural gas to consumers in the domestic, commercial, industrial, and transport sectors through a network of pipelines.
In a strategic push towards expansion, AG&P Pratham is acquiring Hiranandani Group's Darshan Hiranandani-owned LNG terminal in Maharashtra's Jaigarh that will support the company's expansion of its city gas distribution business.
The company spokesman emailed that in December 2024, the firm has already invested USD 1 billion in developing the network throughout the authorized areas of geographies. Soon, it will invest a further amount of USD 1 billion for expansion of infrastructure as well as for popularization of adoption of natural gas as an alternative fuel.
At present, AG&P operates 18 liquefied natural gas (LNG) stations and 460 compressed natural gas (CNG) stations. The company will increase the number of CNG stations to about 800, while in the same breath, is developing its plans for the LNG stations' growth.
AG&P Pratham will build a comprehensive system within the next year that shall cover over 24,000 inch-kilometre of steel pipelines, surpass 2,000 CNG and LNG stations, and shall reach 150 million customers spread in 324,000 square km.
According to an industry official who is aware of the development, the expansion would focus on major highways across South India, parts of Bhopal, and Madhya Pradesh. The official also said that AG&P Pratham plans to aggressively grow in the LNG dispensing segment, which presents significant business opportunities.
The company owns 12 CGD licenses to develop CGD infrastructure in 37 districts, covering 8 per cent of India's landmass and spread across five states: Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, and Rajasthan. AG&P Pratham's CGD network supplies piped natural gas (PNG) to domestic households, commercial establishments, and industries, as well as CNG for vehicles.
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