Osaka Gas and Japan Bank for International Cooperation invest in Asian LNG expansion

Tuesday, 30 July 2019
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LNG Journal editor

Japanese utility Osaka Gas and the Japan Bank for International Cooperation (JBIC) have decided to invest in AGP International Holdings of Singapore to help expand the city-gas and LNG markets in southeast Asia and India.

Under the agreement, AGP International has sold a minority stake to Osaka Gas and the JBIC for $100 million.

Direction

The funds will be invested in AG&P’s growing city-gas distribution and LNG import terminal activities in Asia.

AGP International is part of the Filipino infrastructure group AG&P.

Osaka Gas has also entered into a collaboration agreement specific to AGP International and its natural gas value chain.

AGP Group has expanded from its construction and engineering business to the acquisition of Gas Entec Co., Ltd. (Gas Entec), which designs small-scale to medium-scale LNG vessels.

“AGP possesses high engineering skills and marketing abilities in LNG industry, actively involved in developing the LNG businesses with floating LNG platforms and city-gas business to meet the growing demand mainly in Southeast Asia and India,” said Osaka Gas.

The Japanese utility said it was presently active in Singapore, Thailand and Indonesia, growing the gas supply business for industrial customers, as well as the energy services business.

Osaka Gas said there were also plans to begin operating in Vietnam this year.

“With this (AGP) investment and entry into a collaboration agreement, there will continue to be synergy from the project development know-how and engineering skills that the AGP Group has in LNG businesses as well as the knowledge that Osaka Gas has accumulated domestically for LNG and gas pipelines,” explained the Japanese company.

“Moving forward, the companies will be actively involved in developing LNG terminals, power plants and LNG supply businesses to create a natural gas value chain in Southeast Asia and other countries which have growing demand for LNG,” it added.

AG&P said it was developing LNG and gas-related projects in emerging markets including the ones in Southeast Asia and Osaka Gas was a good partner.

JBIC said that its investment supports the overseas business of Osaka Gas and contributes to Japanese industry in maintaining and enhancing its international competitiveness.

“In addition, based on the Japanese government's policies, it is considered that expansion of the LNG market in Asia contributes not only to overseas business for the Japanese energy industry, but also to securing stable supply of LNG for Japan,” it added.

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