In a notable development, the Government of Tamil Nadu has unveiled the Rs 17 billion 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. The State Government laid the foundation stone for AG&P Pratham’s second city gate and mother station in Tamil Nadu 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 Indian Oil Corporation Limited’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 and CNG distribution network.
In February 2021, AG&P Pratham signed a memorandum of understanding with the Government of Tamil Nadu to invest Rs 27 billion 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 Rs 17 billion for establishing the CGD infrastructure in parts of Chennai, Kancheepuram and Chengalpattu districts.