Arrows are marked on pipes at a shale gas capture and transfer facility at the Fuling shale gas project site. Photographer: Qilai Shen/Bloomberg
A Japanese consortium will invest $370 million to acquire a minority stake in a platform that invests in companies developing city gas distribution networks in India, global infrastructure investor I Squared Capital said on Monday.
The consortium of Osaka Gas, Sumitomo Corp and a Japanese government-sponsored investment fund will invest in Indian companies developing and operating natural gas infrastructure, I Squared Capital said in a statement.
The platform, called the Natural Gas Transition Platform, has investments in last-mile city gas distribution companies, including THINK Gas and AG&P Pratham, which are developing city gas infrastructure in 19 geographical areas covering 325,000 square kilometers, the statement said.
“The additional capital provided will be used to support India’s energy transition through the expansion of last-mile city gas distribution infrastructure,” said Harsh Agrawal, I Squared Capital’s senior partner for Asia Pacific.
I Squared Capital supports India’s goal to transition from more carbon-intensive fossil fuels to natural gas, with the country aiming to increase the share of natural gas from nearly 7% to 15% of its primary energy mix currently by 2030, he added.
The infrastructure investor said the platform will also increase investments to boost the consumption of renewable natural gas or biogas in India and the use of green hydrogen through the city gas network.
I Squared Capital, headquartered in Miami, has more than $38 billion in assets under management and manages a portfolio of 82 companies worldwide in sectors including utilities, energy and digital infrastructure, according to the statement.
First print: April 15, 2024 | 11:37 PM IST