In a notable development, AG&P has signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government for the development of city gas distribution (CGD) networks to supply natural gas across six districts of Tamil Nadu. Under the MoU, AG&P will invest Rs 27 billion over the next eight years to build CGD networks in districts of Kanchipuram, Chengalpattu, Vellore, Ranipet, Thirupathur and Ramanathapuram.

In 2018, 12 out of 38 districts in Tamil Nadu were awarded licenses by the Petroleum and Natural Gas Regulatory Board for the development of CGD networks. Of these, AG&P bagged six districts encompassing an area of around 13,751 square km. These districts will be connected to natural gas through 12,000 km of pipeline being laid by the company.