TN reveals Rs 1,700 cr infra investment plan for city gas distribution

23 Jul 2021 CW Team

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.

Image Source

Also read: Gadkari inaugurates India's first LNG facility

Also read: CPCL to set up Rs 29,000 cr refinery in TN

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

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. Image Source Also read: Gadkari inaugurates India's first LNG facility Also read: CPCL to set up Rs 29,000 cr refinery in TN

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Infrastructure Transport

05 Sep 2025

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Infrastructure Transport

05 Sep 2025

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..