Tamil Nadu Chief Minister unveils INR 1,700 crore investment commitment for City Gas Distribution infrastructure

With a shared vision of a Clean Energy Future, Hon’ble Chief Minister of Tamil Nadu, Shri M.K. Stalin today unveiled the 1,700 crore City Gas Distribution (CGD) infrastructure investment commitment for Chennai, Kancheepuram and Chengalpattu district by AG&P Pratham, the CGD arm of Atlantic Gulf & Pacific (AG&P), Singapore, a leading global downstream gas and LNG logistics company. On the occasion, Hon’ble Shri M.K. Stalin laid the foundation stone for AG&P Pratham’s second City Gate and Mother Station in the State at Vallam-Sriperumbudur, Kancheepuram and inaugurated the commissioning of its first Compressed Natural Gas (CNG) station at Meenambakkam, Chennai.

 AG&P Pratham’s City Gate Station will receive natural gas directly from IOCL’s natural gas pipeline and the Mother Station will take the uninterrupted supply of the clean fuel to distribute to industrial, commercial, and domestic consumers through a Piped Natural Gas (PNG) and CNG distribution network, opening up a new era of clean, efficient fuel for the State.  CNG is a non-toxic and safer fuel that offers significantly improved mileage and a reduction in maintenance costs with the reported increase in savings of up to 40-50% for CNG-fueled auto-rickshaw drivers, taxi drivers, and car rental owners.  Similarly, the PNG equivalent of a 14.2 kg domestic LPG gas cylinder, offers savings of up to 30-40% in the non-subsidized and 20-30% in the subsidized category.
 Speaking at the occasion, Mr. Abhilesh Gupta, Managing Director, AG&P Pratham, said, “We are honored to collaborate with the Government of Tamil Nadu to establish the city gas infrastructure in the industrial hub of Tamil Nadu, and bring this safe and environmentally-friendly alternative to our customers. Our second City Gate and Mother Station in the State will provide power plants, industrial, commercial and domestic consumers uninterrupted access to this competitive fuel.  In addition, over the next eight years, as part of our investment commitment, we will be commissioning a network of 113 CNG stations and installing 11,50,000 domestic PNG connections in part of Chennai, Kancheepuram, and Chengalpattu district. We are focused on achieving the State’s mission to transform into a gas-based economy and hope that the wide availability of natural gas will spur even more manufacturing while simultaneously generating employment for over 3,400 people and trigger overall economic and social progress with healthier air.”

 In February this year, AG&P Pratham signed an MoU with the Government of Tamil Nadu to invest INR 2,700 crores over the next eight years to build CGD networks in districts of Chennai, Kancheepuram, Chengalpattu, Vellore, Ranipet, Thirupathur and Ramanathapuram. Of this, AG&P committed to invest INR 1,700 crores for establishing the CGD infrastructure in a part of Chennai, Kancheepuram and Chengalpattu districts, the industrial hub of Tamil Nadu.

 Since 2018, AG&P Pratham was awarded 3 concessional areas comprising of 6 districts and part of Chennai district in Tamil Nadu  by the Petroleum and Natural Gas Regulatory Board (PNGRB) for the development of CGD infrastructure and natural gas market. AG&P will be supplying PNG to 20 lakh households, 10,000 commercial establishments, 150 industrial enterprises and operate over 200 CNG stations in the State in coming years.