French oil giant Total has big plans for India

New Delhi: French energy giant Total S A has signed an agreement with Goutam Adani-led Adani Group to join hands for investing in downstream sector in India — including foray into retail segment through 1500 outlets to supply compressed natural gas (CNG) and developing various liquefied natural gas (LNG) projects.

Both the companies have set a target of developing various regasification terminals including Dhamra LNG, on the East coast of India. “Most essentially it would be a big stride towards India’s vision of achieving a healthier energy mix through promotion of LNG,” the companies said in a joint statement today.

Total and Adani will also create a joint venture with an objective to build a retail network of 1,500 service stations over a period of 10 years, on the main roads of the country, such as highways and intercity connections to supply compressed natural gas for vehicles.

The companies said that the move is to tap the domestic fuel market that is growing at a pace of 4 per cent per year driven by the development of road infrastructures and the emergence of the middle class. These new service stations will offer Indian customers Total’s full lineup of fuels, lubricants, as well as a broad range of other products and services.

Adani Group Chairman, Gautam Adani, said, “The global synergy between the two groups presents widespread benefits and long-term value for the economy and the people of India. We are looking forward to this opportunity to touch millions of lives by leveraging our collective footprints and domain expertise in the energy sector. It also enables the Adani Group to be part of the country’s vision in adopting cleaner energy.”

The announcement comes soon after the French major’s Chairman and Chief Executive Officer Patrick Pouyanne said that his company is keen on investing in city gas distribution and fuel retail segments, and is also in talks with multiple players to invest in LNG business. “India’s energy consumption will grow among the fastest of all major economies in the world over the next decade. The partnership between Total and the private Adani Group illustrates our joint commitment to assisting India to diversify its energy mix and to ensure a supply of reliable, affordable and clean energy to consumers,” Pouyanné said.

At present, India has 1424 CNG stations catering to 3 million vehicles. The petroleum ministry is expecting this to increase to 10,000 outlets by 2030. Many carmakers in India like Maruti Suzuki, Hyundai and Ford are already providing factory fitted CNG kits on its cars.

Early this year, Total had exited from Hazira LNG regasification terminal in India, selling its 26 per cent stake to Shell, which the company had termed as a move to capture value through an asset disposal.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.