THINK Gas plans ₹10,000 cr expansion in 5 yrs

THINK Gas Pvt Ltd, formerly known as AG&P Pratham, has planned to invest ₹10,000 crore over the next five years to bolster its infrastructure and expand its operations. The company, a significant player in the city gas distribution (CGD) sector, has already invested over ₹8,000 crore in the past four years.

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Chiradeep Dutta, Director and Chief Operating Officer at THINK Gas, said the company aims to maintain an annual investment rate of 7–8%, although the figures may evolve based on strategic priorities. “We are focusing not just on natural gas and LNG, but also on future-forward segments like biogas, hydrogen blending, and fuel cells,” Dutta said. “Our goal is to remain agile and responsive to the emerging energy landscape.”

Currently generating annual revenues of around ₹2,000 crore as of July 2025, THINK Gas expects this figure to grow to ₹2,400 crore by March 2026. The revenue growth is largely being driven by the expansion of the company’s compressed natural gas (CNG) infrastructure and increased adoption of CNG as a cleaner fuel alternative.

CNG volumes are rising at an impressive 8% month-on-month, translating to more than 100% annualised growth. However, Dutta noted that such exponential expansion is not sustainable in the long term and is expected to stabilise as the market matures.

THINK Gas presently holds 19 CGD authorisations from the Petroleum and Natural Gas Regulatory Board, covering 50 districts—approximately 10% of India’s geographic area and population. Its network includes over 500 CNG stations, around 5.5 lakh domestic piped natural gas (PNG) connections, and about 20,000 inch-km of steel pipelines connecting industrial and commercial establishments.

The company is eyeing significant expansion in southern India, with plans to increase the number of CNG stations in the region to 1,500, aligning closely with projected demand to avoid overcapacity.

In the LNG segment, THINK Gas currently operates 18 stations nationwide, with three additional stations under construction in Nellore (Andhra Pradesh), Bhatkal (Northern Karnataka), and Kollam (Kerala). Additionally, the company runs 21 City Gate Stations that receive gas directly from trunk pipelines managed by GAIL, Reliance, and Indian Oil, distributing it through a hybrid network model combining both physical and virtual delivery systems.

Since its major investment push began in July 2021, THINK Gas has commissioned over 9,000 km of Medium-Density Polyethylene (MDPE) pipelines and nearly 1,800–1,900 km of steel pipelines. This infrastructure footprint now surpasses that of some of the sector’s longstanding players, including Mahanagar Gas and Indraprastha Gas.

THINK Gas is entirely funded through foreign direct investment. Its backers include iSquared Capital, which has a presence in over 60 countries, and several Japanese partners such as Osaka Gas, Sumitomo Corporation, and the Japan Infrastructure Fund, a government-backed institution.

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