Osaka Gas, Japan gov't lender invest $93 mil. in Singapore's AGP

©Kyodo News

Osaka Gas Co. is seeking to enhance its natural gas business in Asia through an investment and business alliance with Singapore's engineering firm AGP International Holdings Pte. Ltd.

The Japanese utility teamed with the government-backed Japan Bank for International Cooperation in investing a total of 10 billion yen ($92.6 million) in the Singapore firm, an Osaka Gas spokeswoman told NNA on Monday.

Osaka Gas' investment in AGP was made via a wholly owned subsidiary, Osaka Gas Singapore Pte. Ltd., according to a statement released Monday.

"This is our first investment ever in an engineering firm both at home and abroad," she said.

The gas utility bought "a minority stake" through the investment, the spokeswoman said, but declined to comment on the proportion of stakes acquired by the two investors.

The AGP group has experience in the fields of liquefied natural gas such as the deployment of floating LNG platforms and gas supply in regional cities, mainly in Southeast Asia and India.

Osaka Gas expects to bring about synergy effects by combining its expertise in LNG business with AGP's strength in upstream operations as the utility operates gas business outside Japan mainly in the downstream sector, she added. (NNA/Kyodo)