Adani hand-shakes with French Energy Major Total, to sell fuel & gas in India

PARIS | NEW DELHI | AHMEDABAD | MUMBAI | RAJKOT – Keeping in view the road infra growth story and the rising middle class consumer in India, French energy major Total S.A. inked pact with Indian conglomerate Adani Group to enter the energy market in India.

Both companies aim to develop multi-energy offerings to the Indian Energy markets primely in areas of liquified natural gas and retail fuel, the press release submitted by Adani group companies to the Exchanges in India on Wednesday said.

Announcement from the company had hit the exchanges prior to opening of the trading session on the Indian Bourses on Wednesday.

Adani and Total have signed an agreement to jointly develop multi-energy offerings to the Indian energy market, the release said.

The diversified portfolio includes Liquefied Natural Gas (LNG) and Fuel Retail.

This strategic partnership between Total and Adani Group will therefore allow to create, a major footprint in LNG (Liquified Natural Gas) business and create fuel retailing network of 1,500 service stations across India, the release said.


FOOTPRINT IN LNG BUSINESS

One of the objective of the agreement between the two companies is to create a major footprint in LNG business.

Total, the world’s second largest LNG private player, and Adani, the largest infrastructure conglomerate in India, will serve the fast growing gas demand of the Indian market.

The partnership has 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.


RETAIL GOALPOST

Total and Adani will create a Joint Venture with an objective to build a retail network of 1,500 service stations over the period of 10 years, on the main roads of the country, such as highways and intercity connections.

The move is aimed to take advantage of a market growing at 4% per year driven by the development of road infrastructures.

Equally the emergence of middle class consumers, which has been open to private investors (private fuel operators) for addressing their requirements is also one of the pivotal factor for the decision taken by both the companies.

These new service stations, in line with international standards, will offer Indian customers Total’s full lineup of fuels, lubricants, as well as a broad range of other products and services.


COMMENTS OF MANAGEMENT

Speaking on the occasion, Adani Group Chairman, Gautam Adani, said,

“I am delighted to partner with Total, one of the biggest energy companies in the world. 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. 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.”

Patrick Pouyanné, Chairman and CEO of Total said,

“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. We are thrilled to build this broad partnership with the Adani Group, benefitting from its in-depth knowledge of the Indian infrastructure and energy market, as well as its access to infrastructures through a significant footprint in several of the country’s key ports,” 


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