Osaka Gas, Sumitomo Corporation and Japan Overseas Infrastructure Investment Corporation (JOIN) are investing $370m (€347m) for a minority stake in I Squared Capital’s India city gas distribution platform.
I Squared said the consortium of Japanese investors will become strategic minority shareholders in Natural Gas Transition Platform, a Singapore-based holding company with investments in Indian city gas distribution networks that develop and operate compressed natural gas (CNG) stations.
The platform operates CNG stations for vehicles, pipe natural gas to homes and distribute piped natural gas as well as liquefied natural gas to industrial and commercial customers.
Natural Gas Transition Platform has active investments in last-mile city gas distribution businesses, including THINK Gas and AG&P Pratham.
Harsh Agrawal, senior partner for Asia-Pacific at I Squared, said: “India aims to boost the share of natural gas from nearly 7% currently to 15% of the primary energy mix by 2030. I Squared Capital, through the Natural Gas Transition Platform, is committed to supporting a just and equitable transition of the country’s energy sector.
“Our new partners, Osaka Gas, Sumitomo Corporation and JOIN share this ambition and together we will be working to facilitate the shift from more carbon-intensive fossil fuels to natural gas in India.”
Agrawal said the additional capital provided will be used to support the energy transition in India through the expansion of last-mile city gas distribution infrastructure.
Agrawal added: “We regard natural gas as a transitional energy source that will play an important role in global decarbonisation, substituting for more polluting fuels such as diesel and coal, while at the same time supporting India’s urbanisation and industrialisation with stable and affordable energy.”
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