AGP International Holdings Pte. Ltd. (AG&P) said on Monday that it had received an equity investment of approximately $100 million from two Japanese institutions to back the company’s inroads in the global natural gas value chain.
In a statement, the Philippine-based firm identified the investors as Osaka Gas Co. Ltd., through its affiliate Osaka Gas Singapore Pte. Ltd. (Osaka Gas) and the Japan Bank for International Cooperation (JBIC). The two have invested in a minority stake in AG&P.
“We are humbled and privileged by the trust that both Osaka Gas and JBIC have placed in AG&P. These are amazing institutions that possess tremendous expertise and experience in their respective fields,” Jose P. Leviste, Jr, AG&P chairman, was quoted as saying.
AG&P owns and operates two major yard facilities in the Philippines where it employs 4,000 people.
The company said the capital will be used to execute its multiple liquefied natural gas (LNG) initiatives worldwide, including the development and rollout of its city gas distribution business in India.
The company has won long-term, exclusive concessions to connect people in India to compressed natural gas (CNG) for their vehicles and piped natural gas (PNG) directly into their homes across South India and Rajasthan.
Part of the capital will also be used for small- and medium- scale LNG import terminals, such as AG&P’s pending terminals in Karaikal, India and elsewhere.
Investments will also be made on LNG applications and logistics, such as LNG delivery to end-customers by different transportation options, the company said. Capital will also be infused in additional intellectual property for AG&P and its family engineering company, Gas Entec.
AG&P said it will also use funds for its advanced modularization and field construction services to serve global energy and commodity markets in the US, Australia, the South Pacific and Southeast Asian markets and rapidly accelerating domestic infrastructure in the Philippines.
AG&P quoted Katz Sato, head of South and East Asia business development for Osaka Gas, as saying: “Osaka Gas has known AG&P since 2014. Since that time, we have come to admire AG&P’s unique ability to disrupt the natural gas value chain in areas such as city gas distribution, LNG import terminals, LNG bunkering, LNG engineering and advanced manufacturing.”
“We strongly believe that this investment in AG&P will provide Osaka Gas with a valuable asset to create and develop new markets for Osaka Gas. AG&P’s single-minded focus in developing solutions with the end-customer in mind has been inspirational to our team,” he added. — Victor V. Saulon
