AG&P to Invest Rs 80 Billion in Expanding City Gas Network
CGD involves the transportation or distribution of natural gas to consumers in domestic, commercial, industrial, and transport sectors through a network of pipelines.
A company spokesperson stated in an emailed response that AG&P Pratham had already invested $1 billion in building the network across the authorised geographical areas by December 2024. The company plans to invest an additional $1 billion in the coming years to further expand the infrastructure and promote the adoption of natural gas as a preferred fuel.
Currently, AG&P operates 18 liquefied natural gas (LNG) stations and 460 compressed natural gas (CNG) stations. The company intends to expand the number of CNG stations to 800 and is also developing plans to grow its LNG stations. AG&P Pratham aims to create an extensive network over the coming years, which will span more than 24,000 inch-kilometres of steel pipelines, include more than 2,000 CNG and LNG stations, and serve over 150 million customers across 324,000 square kilometres.
An industry official, who is aware of the development, mentioned that the expansion would focus on major highways across South India, parts of Bhopal, and Madhya Pradesh. The official also noted that AG&P Pratham plans to aggressively grow in the LNG dispensing segment, which presents significant business opportunities. The company holds 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.
In a strategic move to expand its operations, AG&P Pratham is acquiring the LNG terminal in Jaigarh, Maharashtra, owned by Darshan Hiranandani鈥檚 H-Energy, which will support the expansion of the company's city gas distribution business.