Japan’s Osaka Gas and JBIC have invested about $100 million in AG&P, which recently won a licence to retail gas in some Indian cities and has plans to build an LNG import terminal on the east coast.

“AGP International Holdings Pte Ltd (AG&P) has received a major equity investment from two Japanese institutions to support AG&P’s success in innovating and disrupting the global natural gas value chain,” the company said in a statement.

Osaka Gas Co Ltd, through its affiliate Osaka Gas Singapore Pte Ltd (Osaka Gas), and the Japan Bank for International Cooperation (JBIC) have invested in “a minority stake in AG&P,” it said without saying the quantum of equity stake picked up by the two. AG&P said the capital will be used to execute multiple initiatives worldwide, including the development and roll-out of its city gas distribution business in India.

“AG&P has won long-term, exclusive concessions to connect millions of people to compressed natural gas (CNG) for their vehicles and piped natural gas (PNG) directly into their homes across South India and Rajasthan,” it said.

Also, the capital would go into setting up “small and medium-scale LNG import terminals, such as AG&P’s pending terminals in Karaikal... that will provide the vital link to bring commercially attractive, convenient and safe gas to population centres that today rely on dirtier and more expensive fuels”.

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