AG&P Pratham, a city gas distribution (CGD) player backed by global infrastructure investor I-Squared Capital, plans to invest up to Rs 8,000 crore over the next three years to expand its CGD network across India. The company which will have already invested USD one billion by December 2024, intends to invest an additional USD one billion to enhance infrastructure and promote natural gas adoption.

AG&P currently operates 18 liquefied natural gas (LNG) stations and 460 compressed natural gas (CNG) stations, with plans to expand to 800 CNG stations. It aims to develop a network comprising over 24,000 inch-km of steel pipelines, more than 2,000 LNG and CNG stations, and serve over 150 million customers across 3,24,000 sq. km. The expansion will focus on major highways in South India and parts of Bhopal and Madhya Pradesh, with a strong emphasis on the growing LNG dispensing market.

Holding 12 CGD licenses, AG&P Pratham has exclusive rights to develop CGD infrastructure across 37 districts in five states: Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, and Rajasthan. The network supplies piped natural gas (PNG) to households, commercial establishments, and industries, alongside CNG for vehicles.

Additionally, the company is acquiring H-Energy’s LNG terminal in Jaigarh, Maharashtra. This acquisition will ensure a reliable LNG supply, supporting its extensive expansion plans and furthering its goal of making natural gas a preferred fuel in India.