AG&P of Philippines major winner in latest Indian CDG auction
Singapore [Singapore], Mar 25 (ANI): Philippine firm Atlantic Gulf and Pacific Company (AG&P) emerged as one of the major winners in a recent government auction of liquefied natural gas (LNG) licenses after it secured licences in nine out of the 50 geographical areas in the tenth round of bidding for City Gas Distribution (CGD) concessions by the Petroleum and Natural Gas Regulatory Board (PNGRB) across India.
In the most recent auction, licenses were issued to 12 companies, two of which are foreign.
Besides AG&P, the other major corporations that won the right to operate in new areas include Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), Gujarat Gas and Gail Gas.
AG&P said in a release that it had won a 25-year exclusive right to supply natural gas pipelines to residential users and commercial establishments, and compressed natural gas (CNG) stations for cars, buses and trucks in districts in the states of Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Rajasthan.
Besides AG&P, the other major corporations that won the right to operate in new areas include Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), Gujarat Gas and Gail Gas.
AG&P said in a release that it had won a 25-year exclusive right to supply natural gas pipelines to residential users and commercial establishments, and compressed natural gas (CNG) stations for cars, buses and trucks in districts in the states of Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Rajasthan.
In the latest bid cycle, AG&P won concessions in a total of 23 districts adding to their success in round nine where they obtain rights in five districts in the three geographical areas of Ramanathapuram, Kanchipuram and Jodhpur.
PPG Sharman, Managing Director, CGD and Logistics, AG&P was quoted saying, "We have plans lined up to invest about Rs 10,000 crore (US$1.4 billion) in CGD business. We are also planning to come up with a one-million-tonne per annum LNG import terminal at Karaikal Port, that will add value to this.” The presence of LNG terminal will help the company to cover the entire value chain and reach out to more industrial consumers. The company is looking to have 10 million piped natural gas (PNG) consumers and about 1,500 compressed natural gas stations across the 12 areas allotted to the company.
PPG Sharman, Managing Director, CGD and Logistics, AG&P was quoted saying, "We have plans lined up to invest about Rs 10,000 crore (US$1.4 billion) in CGD business. We are also planning to come up with a one-million-tonne per annum LNG import terminal at Karaikal Port, that will add value to this.” The presence of LNG terminal will help the company to cover the entire value chain and reach out to more industrial consumers. The company is looking to have 10 million piped natural gas (PNG) consumers and about 1,500 compressed natural gas stations across the 12 areas allotted to the company.
Sharman added that the roll-out of the project will include installation of infrastructure that will make it possible for piped natural gas (PNG) to be used in domestic households as well as for industrial and commercial plants, to operate CNG stations for automobiles and for the delivery of LNG by truck to service various customer segments. The major commercial sectors in the areas that AG&P will be operating in are the chemical, fertilizer, glass, steel, ceramics, food and pharmaceutical industries.
AG&P’s city gas distribution networks are expected to bring significant foreign direct investment and generate direct and indirect employment across India. In the construction of the networks, thousands of local jobs are expected to be created.
Foreign company participation in India’s oil and gas industry was made possible and more attractive by a recent change in government policy to attract more foreign investment in a bid to accelerate infrastructure development. As part of the change, the Indian government will no longer charge a percentage of profit on oil and gas extracted from certain under-explored areas.
Foreign company participation in India’s oil and gas industry was made possible and more attractive by a recent change in government policy to attract more foreign investment in a bid to accelerate infrastructure development. As part of the change, the Indian government will no longer charge a percentage of profit on oil and gas extracted from certain under-explored areas.
In addition, going forward, producers will have complete freedom when it comes to pricing and marketing in future bidding rounds. In all future bids, all oil and gas blocks will be primarily awarded based on the bidders’ commitment to exploration work.
The current government claim that when they took over, only 20 percent of the population was covered by the CGN network but once the tenth-round contracts are implemented, CGN will be available to 70 per cent of the population. The current round is likely to see investment of around Rs 50,000 crore (US$7 billion).
The current government claim that when they took over, only 20 percent of the population was covered by the CGN network but once the tenth-round contracts are implemented, CGN will be available to 70 per cent of the population. The current round is likely to see investment of around Rs 50,000 crore (US$7 billion).
Founded in 1900, AG&P of Manila is a global industrial infrastructure company specialising in gas logistics and construction services for the oil and gas industry. AG&P makes natural gas available to end-consumers in emerging markets through its integrated gas logistics platforms, anchored on its City Gas Distribution (CGD) networks that deliver natural gas directly to houses, gas stations, industrial and commercial establishments, providing easy access to cost-effective energy. Besides its home-base of the Philippines, it has presence in USA, Netherlands, India, Kuwait, Qatar, Oman, Indonesia, Singapore, Australia and South Korea.
A. Soriano Corporation (ANSCOR) which is listed on the Philippine Stock Exchange is the holding company of AG&P. A. Soriano Corporation is a diversified conglomerate which, through its subsidiaries, provides container port services and is also active in various industries including power generation, tourism, aviation, finance and real estate. The company also manufactures wires and cable products. (ANI)
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