• AG&P sells minority stake to Japanese investors for $100 million

    Atlantic Gulf and Pacific company of Manila (AG&P) today announced it has sold a minority stake to Japanese investors in a deal worth $100 million. The capital will be used to execute multiple global LNG initiatives including major projects in India.

    Under the deal, Osaka Gas, through its affiliate Osaka Gas Singapore (Osaka Gas) and the Japan Bank for International Cooperation (JBIC) have invested in a minority stake in AGP International Holdings.

    Commenting on the development, AG&P Chairman Jose P Leviste Jr said Osaka Gas and JBIC have expertise and experience in their respective fields. “We have a great responsibility to work very hard for them and our other shareholders to continue to grow AG&P’s unique business model that captures a large portion of the LNG value chain after the molecule has been shipped,” he said.

    The projects targeted to be implemented with the funds include AG&P’s City Gas Distribution business in India, where the company has won long-term, exclusive concessions to connect millions of people to compressed natural gas (CNG) for their vehicles and piped natural gas (PNG) directly into their homes across South India and Rajasthan.

    The funds will be utilized also for small and medium-scale LNG import terminals, such as AG&P’s pending terminals in Karaikal, India and elsewhere, that will provide the link to bring commercially attractive, convenient and safe gas to population centers that today rely on dirtier and more expensive fuels.

    The company said it would also invest in “LNG applications and logistics, such as LNG delivery to end-customers by different transportation options; and additional intellectual property that has made AG&P and its family engineering company, Gas Entec, leaders in the design, build, testing and commissioning of LNG bunkering vessels, floating storage and regasification (FSRUs, FRUs, FSUs and onshore variations) and LNG, dual-fuel applications for ships and other vehicles.”

    Other projects include 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, where AG&P owns and operates two-yard facilities, employing 4,000 people.

    Osaka Gas is a 114-year old, vertically-integrated energy utility in Japan with revenue of $12 billion. It supplies natural gas to 5.5 million households and operates over 60,000 km of pipeline, in addition to a wide-range of gas, power and renewable assets around the world, including in the US, Europe, and Southeast Asia.

    Osaka’s investment in AG&P is expected to help both the parties work together to develop LNG infrastructure projects in South Asia, Southeast Asia and the Americas, among others.

    JBIC is an institution wholly-owned by the Japanese government with over JPY 16 trillion of debt, equity and guarantees extended in its global portfolio, as of March 31, 2019, intended to support Japanese industry and Japan’s strategic priorities. Its investment in AG&P was made, in line with its policy objectives to support Osaka Gas’ ongoing collaboration with AG&P in expanding its overseas business.

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