Total, Adani expand partnership to supply, market gas in India
Total SA has expanded its partnership with the Adani Group, the largest energy and infrastructure conglomerate in India, to supply and market natural gas in India.
India has set a target of increasing the share of gas in its energy mix to 15% by 2030.
The 50-50 partnership between Adani and Total includes several assets across the gas value chain, notably two import and regasification LNG terminals: Dhamra in East India and potentially Mundra in the West, as well as Adani Gas Ltd., one of the four main distributors of city gas in India of which Adani holds 74.8% and of which Total will acquire 37.4%.
Adani Gas Ltd. aims to expand its distribution of gas in the next 10 years through its 38 concessions covering 7.5% of the Indian population and market natural gas to industrial, commercial, and domestic customers, targeting 6 million homes as well as through 1,500 retail outlets of natural gas for vehicles.
As part of the partnership, Total will bring its LNG and retail expertise and will supply LNG to Adani Gas. Total and Adani also will establish a joint venture to market LNG in India and Bangladesh.
To reach a 37.4% shareholding in Adani Gas in accordance with Indian stock market regulations and subject to regulatory approvals, Total will initially launch a tender offer to public shareholders to acquire up to 25.2% of equity shares before buying the remaining shares from Adani.
Taking into account the divestiture of the group’s interest in Hazira terminal earlier this year, the establishment of this partnership on gas in India represents a net acquisition cost for Total of $600 million over 2019-20.
