Providing a fillip to the city gas distribution (CGD) in South India, the India City Gas Distribution (CGD) project will finance the development of a city gas distribution network in nine geographical areas by a special purpose vehicle named AGP City Gas Private Limited (AGPCGPL) and awarded by the Petroleum and Natural Gas Regulatory Board via an international competitive bid. The Project would connect 10 million residential households to piped natural gas (PNG), install 1,080 compressed natural gas (CNG) stations to supply to the transport sector, and lay 16,186 inch-km of steel pipelines.

The approved project aims to increase availability, and improve accessibility, of natural gas for domestic, transport, commercial and industrial users in nine geographical areas (GA), across the states of Andhra Pradesh (with 2 GAs), Karnataka (with 5 GAs), Kerala and Tamil Nadu (with 1 GA each), thereby reducing consumption of more polluting fossil fuels and alternative petroleum products. At the end of the project it is expected to connect 10 million residential households with natural gas connections and install 1,080 CNG stations.

The project has been screened and reviewed with reference to Asian Infrastructure Investment Bank’s (AIIB) Environmental and Social Policy (ESP), Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List.

The sponsors and stakeholders of the project are AG&P LNG Marketing Pte Limited (AGPLNG, 84.64%); Atlantic Gulf & Pacific Company of Manila (AG&P Manila, 15.36%).

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