Adani’s LNG projects grab Total attention; French giant mulls buying stake, tap India’s gas market

By: | Updated: October 15, 2018 1:34 PM

Adani also holds a stake in another under-construction LPG import terminal, which has a capacity of 3.56 million tonnes per annum, at Mundra in Gujarat and Total SA is looking to acquire a 50% stake in it also, sources told the agency.

Currently, the Indian government meets half of the country’s gas requirements through imports.

French energy major Total SA is in talks to acquire up to 50% stake in Adani’s Gujarat LNG (liquefied natural gas) projects and in an under-construction LPG import facility in Odisha, the PTI reported citing sources. Adani group, which owns the crucial downstream infrastructure in India, could be a good fit for Total SA, which is eying to grab a pie in the growing gas market in the country.

Total SA is also planning to buy a significant holding in Adani’s city gas projects. A preliminary agreement is expected to be signed during Total CEO Patrick Pouyanne’s visit to India this week.

At present, Adani owns 25% equity stake in 5 million tonnes per annum LNG import terminal in Mundra, Gujarat, and is also setting up a similar capacity facility at Dhamra in Odisha at a cost of Rs 5,100 crore.

Adani also holds a stake in another under-construction LPG import terminal, which has a capacity of 3.56 million tonnes per annum, at Mundra in Gujarat and Total SA is looking to acquire a 50% stake in it also, sources told the agency. This facility is expected to be completed by next month.

Meanwhile, shares of Adani Enterprises were trading at Rs 146.55 apiece, up 1.53% on BSE at 1:15 PM today, from the previous close. Stocks of the company opened at Rs 146, and touched an intraday high of Rs 147.90. On the other side, Sensex and Nifty trimmed morning losses to trade on a flat note with marginal gains during Monday’s afternoon trade session.

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Over the next few years, the Indian government is targeting to increase the share of natural gas in its energy basket to 15% and therefore giving a push to city gas distribution projects. Currently, the Indian government meets half of the country’s gas requirements through imports.

At present, Adani Gas is in the process of developing city gas distribution networks to supply PNG (piped natural gas) to the commercial, industrial, domestic or residential units; as well as CNG to the transport sector. As of now, it has set up the network in four cities – Faridabad, Ahmedabad, Vadodara, Khurja.

It also bagged the rights to 13 cities own its own as well as for 9 cities in partnership with Indian Oil Corp. It already has rights to develop CGD networks in Chandigarh, Allahabad, Ernakulam, Daman, Dharwad, Panipat, and Udhamsingh Nagar with Indian Oil Corp

Recently, Total SA exited Hazira LNG terminal in Gujarat by selling its 26% equity holding in the project to Royal Dutch Shell. It had picked up the stake in 2004 in the 2.5 million tonnes per annum terminal, the capacity of which was raised to 5 million tonnes per annum in 2013.

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