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HomeUncategorizedAdani, Total join hands to set up retail network, LNG terminal

Adani, Total join hands to set up retail network, LNG terminal

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Gautam Adani AV

India’s largest infrastructure conglomerate Adani Group and French energy giant Total SA on Wednesday announced a partnership to develop liquefied natural gas (LNG) import terminals and fuel retailing network in India.

Total, which had a few weeks back exited Royal Dutch Shell-led Hazira LNG import terminal in Gujarat, will join Adani in developing a 5 million tonnes a year import facility at Dhamra in Odisha.

The two will also set up a joint venture to roll out a fuel retail network of 1,500 outlets, mostly on highways, in the next 10 years, Adani and Total said in a joint statement.

While the two firms did not indicate details of the deal, including how much stake Total was picking up, sources privy to the development said the agreement signed was a preliminary collaboration pact and details would be announced later.

Also, Total is eyeing a stake in city gas distribution projects of Adani but talks are stuck on valuation.

Sources said Total may take buy some of Adani’s stake in the two terminals.

It is also looking at buying a 50 per cent stake in under-construction LPG import terminal that Adani is building at Mundra in Gujarat as well as a stake in Adani’s flourishing city gas distribution projects.

While the Mundra LNG terminal has Gujarat State Petroleum Corp (GSPC) as the lead partner, Adani is building a new LPG import facility at the same port with a total capacity to 3.56 million tonnes per annum. The LPG terminal is to be completed by next month.

Total Chairman and CEO Patrick Pouyanne had on Tuesday stated that the French company is “very interested” in investing in downstream sectors in India, including LNG terminals.

“City gas is interesting business” that can use the imported LNG, he had said without giving details.

He had stated that Total does not qualify for a license to retail petrol and diesel in the country as it does not meet the Rs 2,000 crore minimum investment threshold set for such a permit.

But with Adani, which has already invested many times more than that amount in oil and gas infrastructure, it will qualify for a retail license.

India is looking at more than doubling the share of natural gas in its energy basket to 15 per cent in the next few years and is giving a major push to city gas distribution projects. It imports half of its gas needs, which are projected to rise exponentially as it shifts from polluting liquid fuels to environment-friendly natural gas.

On signing of the agreement with Total, Adani Group Chairman Gautam Adani said: “The collaboration enables us to associate with Total’s century-old legacy, global presence, scale and unparalleled go-to-market expertise. The global synergy between the two groups presents widespread benefits and long-term value for the economy and the people of India”.

Stating that the pact would enable Adani Group to be part of the country’s vision in adopting cleaner energy, he said the partnership would touch millions of lives by leveraging collective footprints and domain expertise in the energy sector.

The development comes weeks after Total sold its 26 per cent stake in the Hazira LNG terminal to Shell.

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