Japan's Osaka Gas enters India's urban gas distribution market
On Monday, December 20, as part of its foreign growth strategy, Japan's Osaka Gas Co announced that it has joined India's urban gas distribution market by investing in the local business of Singapore-based AGP International Holdings (AG&P).
To address climate change, the government aims to increase the cleaner fuel's share of the country's energy mix from the current 6% to 15% by 2030. Thus, India's natural gas market is expected to see a boom in demand.
Osaka Gas, Japan's second-largest city gas supplier, and a state-private entity, Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), aim to invest up to US$120 million in AG&P's Indian unit.
The AG&P unit has eight-year exclusive gas sales rights in 12 geographic areas, as well as 25-year infrastructure licenses in those areas.
Osaka Gas, which did not say how much stake it would hold, said India was an important growth area for the company in Asia.
Katz Sato, senior general manager of Osaka Gas, told reporters, "We also aim to seek other commercial opportunities in India, like renewable energy."
The company has begun a worldwide expansion to meet its long-term goal of tripling its recurring earnings by 2030, with foreign contributions accounting for one-third of overall profit, up from roughly 5% in 2017.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.