City Gas, Osaka Gas to Establish Singapore JV

City Gas Trust, a wholly-owned subsidiary trust of CitySpring Infrastructure Trust, has agreed to establish a business venture with Osaka Gas of Japan to market and sell natural gas to industrial customers in Singapore.

This follows the signing of a Heads of Agreement in April 2012.

To effect the transaction, City Gas will contribute its existing business of marketing and selling natural gas to industrial customers in Singapore to a new entity (NewCo), to be owned 51% by City Gas and 49% by Osaka Gas.

Osaka Gas will pay S$39.2 million in cash in aggregate for its 49% stake.

Completion of the transaction is subject to NewCo obtaining a gas retailer licence from the Energy Market Authority of Singapore.

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LNG World News Staff, March 12, 2013; Image: iStock