Que: What was the primary motivation behind the merger of Think Gas and AG&P Pratham, and how will this impact India's clean fuel ecosystem?

Ans: The motivation is straightforward—both companies belong to the same set of investors: I Squared Capital, Osaka Gas, and the Japanese consortium. It makes strategic sense to merge as it allows for resource optimisation. We have a highly experienced and technically competent team across both organisations, and this merger ensures we can make the best use of our people.

Another significant benefit is the reduction of GST leakage. Previously, Think Gas had four or five companies under its brand, and AG&P Pratham had two. Every time materials were moved from one company to another, GST was incurred. Now, since these transactions will occur within the same entity, this leakage will be eliminated. The merger facilitates cost optimisation, resource efficiency, and a unified pool of expertise. For instance, professionals specialising in pipeline laying or CNG infrastructure can now work across the entire platform rather than being limited to just one entity.

Que: With the growing demand for CNG and PNG, how does the new entity plan to scale up infrastructure and distribution networks?

Ans: We already have a vast infrastructure in place. Across our platform, we have more than 450 CNG stations—approximately 457—as well as 2,000 km of steel pipeline and 7,000 km of PE pipeline. Our immediate objective is to ensure this ecosystem is fully operational. This means engaging with industries to encourage gas adoption and boosting conversions in the CNG sector, whether through increased use of CNG buses, trucks, LCVs, autos, or even motorcycles, which is a new segment.

A key focus is also on driving volumes. If AG&P Pratham and Think Gas previously purchased gas separately in small quantities, this led to higher procurement costs. With bulk purchasing, we can lower costs and pass on these savings to consumers. While we will continue expanding our pipeline network, constructing CNG stations, CGSs, and DRS, our primary focus right now is on increasing utilisation. If a pipeline is currently at 25% utilisation, we aim to raise it to 50%, 55%, or even 60%.

Que: Looking ahead, what are the top three priorities for Think Gas over the next five years?

Ans: Promoting domestic PNG adoption: Today, a vast majority of Indian households rely on LPG, a trend dating back to 1965. While PNG is widely used in cities like Mumbai and Delhi, it is still not as prevalent in tier 2 and tier 3 cities. Our goal is to make domestic PNG the first choice for consumers. It is not only safer—since it dissipates into the atmosphere in case of a leak, unlike LPG, which lingers and creates a hazardous environment—but it is also more cost-effective. However, certain state governments provide subsidies for LPG that are not extended to natural gas. We intend to advocate for similar subsidies and educate consumers on the benefits of domestic PNG.

Expanding CNG retail stations with LNG offerings: Our second objective is to establish larger CNG retail stations that also sell LNG for long-haul buses and trucks. This will cater to the growing demand for cleaner fuel alternatives in the transportation sector.

Encouraging industrial transition to natural gas: Many industrial areas currently rely on polluting fuels like furnace oil (FO) and light density oil (LDO). Our objective is to drive advocacy efforts with state governments and pollution control boards to encourage a shift to industrial PNG. Air quality in regions like Kopal (Karnataka), Jodhpur, and parts of Punjab is extremely poor, with alarming AQI levels. Transitioning industries to cleaner fuels will not only benefit businesses but also contribute to cleaner air for citizens.

Que: How do you see the role of natural gas evolving in India's energy mix by 2030?

Ans: Natural gas is the key transitional fuel. Today, we are heavily dependent on fossil fuels, and while the future belongs to renewables—such as electric vehicles and alternative clean fuels—this transition will take another 12 to 15 years. In the interim, natural gas serves as the essential bridge fuel to help India meet its COP26 and 2030 emission targets.

With increasing regulatory restrictions on industrial polluting fuels and the potential for natural gas prices to decline over the next couple of years, we anticipate significant growth in adoption. Over the next 10 to 15 years, the demand for natural gas is expected to rise steadily.

Que: How do events like IEW contribute to the growth and collaboration within India's energy sector?

Ans: The India Energy Week (IEW) is a fantastic initiative spearheaded by Prime Minister Modi. Over the past three years, it has been held in Bangalore, Goa, and now Delhi, bringing together stakeholders from across the energy sector—midstream, upstream, and downstream—along with manufacturers, consultants, and engineering experts.

Having the entire industry under one roof fosters collaboration. For example, we can engage with other CGD players like Torrent Gas to exchange insights and discuss challenges. Similarly, manufacturers of compressors, motors, and other equipment are present, enabling us to address operational issues directly with suppliers or explore alternatives. IEW has successfully created an open platform that facilitates networking, problem-solving, and market awareness across the oil and gas ecosystem.