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Japanese Investors Partner With I Squared Capital on US$370 Million Strategic Investment in Natural Gas Infrastructure to Accelerate the Energy Transition in India
Squared Capital, a leading independent global infrastructure investor, today announced that a consortium of Japanese investors will become strategic minority shareholders in the Natural Gas Transition Platform (the Platform), a Singapore-based holding company with investments in Indian city gas distribution networks that develop and operate Compressed Natural Gas (CNG) stations for vehicles, pipe natural gas to homes, and distribute Piped Natural Gas (PNG) as well as Liquefied Natural Gas (LNG) to industrial and commercial customers.
The Japanese investor consortium is made up of Osaka Gas, the second-largest city gas distributor in Japan, Sumitomo Corporation, one of Japan’s largest trading houses, and the Japan Overseas Infrastructure Investment Corporation (JOIN), a government-sponsored entity that promotes Japanese investment abroad. The transaction will diversify the Platform’s shareholder base and bring in additional long-term capital from the consortium members.
Commenting on the transaction, Harsh Agrawal, Senior Partner, APAC, I Squared, said: “India aims to boost the share of natural gas from nearly 7% currently to 15% of the primary energy mix by 2030. I Squared Capital, through the Natural Gas Transition Platform, is committed to supporting a just and equitable transition of the country’s energy sector. Our new partners, Osaka Gas, Sumitomo Corporation and JOIN share this ambition and together we will be working to facilitate the shift from more carbon-intensive fossil fuels to natural gas in India.”
He continued: “We are very pleased to attract these long-term and experienced partners to our growing energy Platform. The additional capital provided will be used to support the energy transition in India through the expansion of last-mile city gas distribution infrastructure. We regard natural gas as a transitional energy source that will play an important role in global decarbonization, substituting for more polluting fuels such as diesel and coal, while at the same time supporting India’s urbanization and industrialization with stable and affordable energy.”
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