Business Venture Between City Gas and Osaka Gas Granted Licence from Energy Market Authority of Singapore
City-OG Gas Energy Services Pte. Ltd. (“City-OG Gas”) the business venture between City Gas Pte Ltd (as trustee of the City Gas Trust) and Osaka Gas Co., Ltd. (“Osaka Gas”), has recently been granted a Gas Retailer’s Licence from the Energy Market Authority.
With the Gas Retailer’s Licence, City-OG Gas will be authorised to retail gas in certain parts of Singapore. City-OG Gas expects to officially commence the business operations on or about 1 August 2013.
Mr Ng Yong Hwee, President and CEO of City Gas Pte Ltd said: “The business venture with Osaka Gas marks an important milestone in City Gas’ history and City Gas looks forward to working together with Osaka Gas to further develop and promote the use of natural gas in industrial applications for the benefit of gas customers in Singapore.”
City-OG Gas is a business venture between City Gas Trust and Osaka Gas, to market and sell natural gas to industrial customers. City Gas Trust holds 51% of the shares in City-OG Gas, with the remainder held by Osaka Gas. As part of the agreement, City Gas Trust’s existing businesses in marketing and selling natural gas to industrial customers will come under City-OG Gas.
“City Gas will now be able to leverage on Osaka Gas’ technology and expertise in cogeneration systems and industrial furnaces to grow the natural gas retail business. City Gas will leverage on its extensive network and customer knowledge to develop and promote the business venture.” noted Mr Ng.
Following the grant of the Gas Retail Licence to the business venture, the divestment of 49% of City-OG Gas to Osaka Gas for a consideration of $39.2 million is expected to be completed on or about 1 August 2013.