Chief Minister of Tamil Nadu, MK Stalin has 1,700 crore City Gas Distribution (CGD) infrastructure investment commitment for Chennai, Chengalpattu and Kancheepuram district by AG&P Pratham, the CGD arm of Atlantic Gulf and Pacific (AG and P), Singapore, a global downstream gas and LNG logistics firm.
Stalin set the foundation stone for AG&P Pratham’s second City Gate and Mother Station in Chennai 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 get natural gas directly from IOCL’s natural gas pipeline, and the Mother Station will get the continuous supply of the clean fuel to supply to industrial, commercial, and domestic customers through a Piped Natural Gas (PNG) and CNG distribution network, beginning up a new era of clean, efficient fuel for the State.
CNG is a non-toxic and safer fuel that gives significantly enhanced mileage and a decrease in maintenance expenses with the recorded surge in savings of up to 40-50% for CNG-fueled taxi drivers, auto-rickshaw drivers and car rental owners. Likewise, the PNG equivalent of a 14.2 kg domestic LPG gas cylinder, gives savings of up to 30-40% in the non-subsidised and 20-30% in the subsidised category.
Speaking at the event, Abhilesh Gupta, the Managing Director of AG&P Pratham, said that they are honoured to collaborate with the Tamil Nadu Government to set up the city gas infrastructure in the industrial centre of Tamil Nadu and deliver this safe and environmentally-friendly option to their customers. Their second City Gate and Mother Station in the State will give industrial, commercial, domestic consumers and power plants continuous access to this competitive fuel.
Additionally, over the subsequent eight years, as a part of their investment commitment, they will be commissioning a network of 113 CNG stations and establishing 11,50,000 domestic PNG connections in parts of Kancheepuram, Chennai and Chengalpattu district.
In February 2021, AG&P Pratham inked an MoU with the Government of Tamil Nadu to fund Rs 2,700 crore over the next eight years to install CGD networks in the districts of Chengalpattu, Thirupathur, Chennai, Kancheepuram, Vellore, Ranipet and Ramanathapuram. Of this, AG and P committed to funding Rs 1,700 crore for installing the CGD infrastructure in a part of Kancheepuram, Chennai and Chengalpattu districts, the industrial centre of Tamil Nadu.
Since 2018, AG&P Pratham has been granted three concessional areas covering six districts and part of Chennai district in Tamil Nadu by the Petroleum and Natural Gas Regulatory Board (PNGRB) for the CGD infrastructure and natural gas market development. AG&P will be supplying PNG to 20 lakh households, 10,000 commercial establishments, 150 industrial enterprises and work over 200 CNG stations in the State in the upcoming years.
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