Chief Minister Thiru Edappadi K Palaniswami unveils AG&P’s Piped Natural Gas (PNG) project in Rameshwaram
Dedicates the State’s first City Gate Station & CNG Mother Station launched by AG&P in Ramanathapuram District
AG&P to invest Rs 2,700 crores over the next 8 years to ensure continuous access to clean and low-cost natural gas in Tamil Nadu
Investment to generate 7,000 direct and indirect local jobs
Chennai, NFAPost: Atlantic, Gulf & Pacific Company (AG&P), the global downstream gas and LNG logistics company, and the Government of Tamil Nadu today signed a Memorandum of Understanding (MoU) for the development of City Gas Distribution (CGD) networks to supply reliable, economical, and environment-friendly natural gas across six districts of Tamil Nadu.
Under the MoU, AG&P will invest INR 2,700 crores over the next eight years to build CGD networks in districts of Kanchipuram, Chengalpattu, Vellore, Ranipet, Thirupathur and Ramanathapuram.
The new, world-class CGD infrastructure is being developed under AG&P’s CGD brand in India – AG&P Pratham. The occasion was graced by Tamil Nadu Chief Minister Edappadi K. Palaniswami, who unveiled AG&P’s PNG project in Rameshwaram and dedicated the State’s recently launched first City Gate Station & CNG Mother Station launched by AG&P in Ramanathapuram District.
The Government of Tamil Nadu is committed to provide support to enable development of the much-awaited CGD infrastructure, that will deliver uninterrupted supply of PNG to households, commercial and industrial customers, and Compressed Natural Gas (CNG) depots and stations for 24/7 access to CNG for vehicles.
AG&P Pratham’s PNG initiative in Rameshwaram, its natural gas Mother Station in Ramanathapuram along with two CNG stations, are spearheading the development of the State’s city gas infrastructure that will drive socio-economic development as more and more people transition to smarter and cleaner fuels.
AG&P Managing Director – City Gas Distribution PPG Sarma said the company is honoured to collaborate with the government of Tamil Nadu to develop city gas infrastructure in the state, which will make the State truly self-reliant.
“We are on the cusp of an energy revolution and as one of the most dynamic regions in India, Tamil Nadu has tremendous opportunities for growth, development, and innovation in the CGD sector. With the Government’s continued support and sustained focus on infrastructure, we are providing Tamil Nadu’s regional and rural communities with reliable, 24/7 access to natural gas and all the health and economic benefits it offers,” said PPG Sarma.
Furthermore, PPG Sarma said AG&P’s LNG import terminal in Karaikal (“KLNG”), strategically located 280 km south of Chennai and in close proximity to Tamil Nadu’s thriving manufacturing clusters, will also be a major contributor to Tamil Nadu’s transformation into a gas-based economy.
“KLNG will not only provide access of natural gas to power plants, and industrial and commercial customers within a 300 km radius of Karaikal, but it will guarantee stable, best priced natural gas supply to the region’s CGD networks including those operated by AG&P Pratham and other CGD companies,” said PPG Sarma.
In 2018, 12 out of 38 districts in Tamil Nadu were awarded licenses by the Petroleum and Natural Gas Regulatory Board (PNGRB) for the development of CGD networks. Of these, AG&P bagged six districts encompassing ~13751 square km, who will be connected to natural gas through 12,000 km of pipeline being laid by the company.
Under the licenses, AG&P will sell natural gas exclusively for eight years and operate its CGD facilities exclusively for 25 years. By 2028, AG&P will be supplying PNG to 20 lakh households, 10,000 commercial establishments, 150 industrial enterprises such as SIPCOT, SIDCO and Mahindra World City, and will operate more than 200 CNG stations across the state.
Atlantic Gulf & Pacific (AG&P) is a global leader in developing and running LNG and gas logistics and distribution solutions. AG&P provides the infrastructure to access natural gas safely and easily in new and growing markets. The company acts as an owner and as a service provider covering the engineering, procurement, project management and construction for onshore and offshore gas infrastructure, linking suppliers to downstream customers.
AG&P Pratham, India, is the City Gas Distribution (CGD) arm of the Singapore-based AG&P Group, a leading downstream LNG and gas logistics company. We distribute LNG and natural gas from our terminals to our end-customers across the power, industrial, commercial, domestic and transport sectors.
AG&P holds 12 CGD licenses awarded by the Petroleum & Natural Gas Regulatory Board (PNGRB) to exclusively provide natural gas for everyday use in 31 districts in Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Rajasthan. The exclusive rights cover the supply of Piped Natural Gas (PNG) to households, industrial, commercial, non-commercial and non-domestic exempt commercial (NDEC) establishments, as well as Compressed Natural Gas (CNG) for use in vehicles. These CGD networks will cover 278,000 square kilometers, 17,000 inch-km of pipeline and over 1,500 new CNG stations.