THINK Gas to invest ₹10,000 cr, aims for top spot in city gas distribution

THINK Gas is looking to become India’s leading city gas distribution (CGD) player over the next five years, with plans to invest around ₹10,000 crore, a senior company executive told Business Standard on Wednesday. 

The company said its proposed merger with AG&P Pratham will be completed by the first half of 2026. After the merger, THINK Gas is expected to overtake Indraprastha Gas, Mahanagar Gas, and Gujarat Gas to become the second-largest CGD company in India, behind only Adani Total Gas. 

“The merger will be complete within the next nine months. We’ll emerge as the second-largest CGD company, next only to Adani Total Gas,” said Chiradeep Datta, director and chief operating officer of THINK Gas. “We’re planning to invest around ₹10,000 crore over the next five years to claim the top spot.” 

 

The company has already invested around ₹8,000 crore in the sector and is awaiting approval from the Petroleum and Natural Gas Regulatory Board for the merger. Datta added that THINK Gas plans to leverage its retail network to sell liquefied natural gas, set up electric vehicle charging stations, and retail petrol and diesel — initiatives currently under government consideration.

AG&P Pratham and THINK Gas announced the merger in February 2025. I Squared Capital will be the primary shareholder in the combined entity, which will also include Osaka Gas, Sumitomo Corporation, Konoike Group, the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development, and AG&P Global. 

 

“Our target is to reach over 1 million households and 1,500 fuelling stations in the next few years, up from around 550,000 homes and 500 outlets currently,” Datta said. 

By comparison, media reports suggest Adani Total Gas already serves over 1.1 million piped natural gas customers and operates more than 1,000 compressed natural gas (CNG) stations, along with 10,417 industrial and commercial clients. 

THINK Gas’s network spans 19 geographical areas across Andhra Pradesh, Bihar, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh, and Tamil Nadu. Its 17,000 inch-kilometre (km) steel pipeline connects industrial and commercial hubs across these states. 

Datta said the leadership teams of both companies have already merged, with Abhilesh Gupta serving as managing director and chief executive officer. For tech integration, THINK Gas has partnered ABB India, which is providing automation and digitalisation across its operations in 10 states. 

Using ABB’s Cloud-based automation platform, THINK Gas has centralised control of its CGD network from a command centre in Chennai, gaining real-time visibility. 

“By digitalising and centralising our distribution network, we’ve improved operational efficiency, optimised manpower, and now use real-time data to make better decisions,” Datta said. 

In a statement, the company said it plans to expand its pipeline network to 24,000 inch-km, support over 2,000 CNG stations, and serve 180 million customers across 324,000 square km in the coming years.