In a notable development, Atlantic Gulf and Pacific Company (AG&P) has secured $300 million from US-based I-Squared Capital. I Squared Capital, through its ISQ Global Infrastructure Fund III and ISQ Growth Markets Infrastructure Fund, has invested approximately $200 million as a first tranche of a $300 million equity raise in AG&P City Gas.  

AG&P has exclusive rights to develop the city gas distribution (CGD) infrastructure in 31 districts across five states of India. The company is expected to use the funds to expand its CGD network in India. Along with AG&P, I Squared Capital was one of the early foreign institutional investors in the Indian city gas sector and is committed to helping the country achieve its target of having 15 percent of natural gas in its primary energy mix by 2030. I Squared Capital is planning to deploy up to $1.3 billion in capex to build out the distribution networks in India.

AG&P’s CGD business in India, AG&P Pratham holds 25-year exclusive rights from the Petroleum and Natural Gas Regulatory Board to develop CGD infrastructure and supply gas in more than 278,000 square km area across Rajasthan, Kerala, Andhra Pradesh, Karnataka and Tamil Nadu. This involves setting up more than 1,500 compressed natural gas stations and 17,000 inch-km of pipelines.