G&P Pratham, the India arm of Singapore-based Atlantic Gulf & Pacific (AG&P) City Gas, is planning to invest over Rs. 90 billion in the city gas distribution business in the country, a senior official said.
The investments would be towards expanding city gas distribution (CGD) infrastructure and setting up new compressed natural gas (CNG) stations, among other areas. "We would be investing in steel pipelines, in polyethylene pipelines, setting up of CNG stations, purchase of land parcels, among others. This is a very capital-intensive project," said Chiradeep Datta, chief operating officer, AG&P Pratham.
The company, which has been authorized in 12 geographical areas, and covers 34 districts of the country, has 140 CNG operational stations across the country and 50 stations pending approvals from Petroleum and Explosives Safety Organization.
To service its geographical areas (GAS) or districts, the company has adopted a hub-and-spoke model. It is setting up mini-LNG facilities wherein the company brings LNG from the ports - Kochi, Dabhol or Dahej - and transports it into a cryogenic tanker to bring it into the GAS.
