March 7, 2019 | 12:07 am
FILIPINO FIRM Atlantic
Gulf and Pacific Co. (AG&P) said on Wednesday that it had emerged as the
dominant player in south India’s liquefied natural gas (LNG) business after it
secured nine licenses in the 10th round of auction of city gas
distribution concessions by the regulatory board.
“AG&P is only one
of two foreign companies to secure the coveted agreements to deliver natural
gas directly to the residential, commercial, industrial and transport sectors
in some of India’s most densely populated states,” the 119-year-old
Philippine-based company said in a statement.
AG&P said the
25-year exclusive rights cover natural gas pipelines to residential users,
supply for commercial establishments and compressed natural gas (CNG) stations
for cars, buses and trucks in the districts of Andhra Pradesh, Tamil Nadu,
Kerala, Karnataka and Rajasthan.
The announcement comes
as the global gas logistics company looks towards the Philippines for
participation in infrastructure construction for the energy, transport and
civil work projects under the government’s massive “Build, Build, Build”
program.
“AG&P is very
excited by this tremendous opportunity, which ultimately is a serious
responsibility to the people and businesses in our geographic areas,” Joseph M.
Sigelman, AG&P chief executive officer, said.
He said the company has
started mapping the routes of its lines in each area, and crafting an
implementation plan to be rolled out in the next few months.
“The roll-out of the project
will include the installation of infrastructure making the following possible
across the 28 districts we have been awarded: piped natural gas (PNG) for use
in domestic households; PNG for for industrial and commercial use; CNG stations
supporting use as an automotive fuel; delivery of LNG by truck to service
various customer segments,” PPG Sarma, AG&P’s managing director for the
city gas distribution and logistics business, said.
“The investments will
be substantial and phased over time as construction of the infrastructure gets
underway, with a projected investment of $1.3 billion,” he added.
AG&P’s city gas
distribution networks are expected to bring significant foreign direct
investment and generate direct and indirect employment across India. The construction
of the networks is also seen to create thousands of local jobs. — Victor V.
Saulon
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