French energy giant Total SA said it’s in discussions with multiple Indian companies to acquire a stake in LNG import terminals and city gas distribution projects, and is also interested in setting up petrol pumps in the world’s fastest growing energy consuming nation.
Total is also interested in fuel retailing in the country but for that a license (petrol, diesel retailing) is needed so the company is working on that too.
A license to set up petrol pumps in India is contingent upon a company investing Rs 2,000 crore in oil and gas infrastructure like refineries, pipelines, import terminals and oil and gas fields.
Total’s investment in a LPG import terminal in Andhra Pradesh doesn’t qualify it for a retailing license.
The French firm is keen on India and finds Adani a suitable vehicle as it owns the crucial downstream infrastructure, sources said.
Adani holds a 25 percent stake in the just-completed 5-million-tonnes-a-year liquefied natural gas import terminal at Mundra. It is also building a similar capacity LNG import terminal at Dhamra in Odisha at a cost of Rs 5,100 crore. Total, according to sources, is in talks to buy half of Adani’s stake in the two terminals.
Adani Gas, a subsidiary of Adani Enterprises Ltd., is developing city gas distribution networks to supply the piped natural gas to commercial and domestic markets, and compressed natural gas to the transport sector.
It has set up city gas distribution networks in Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh.
In the recently concluded city gas distribution bid round, it won rights to 13 cities on its own and another 9 in joint venture with state-owned Indian Oil Corporation.
The development comes weeks after Total announced its exit from Royal Dutch Shell-operated Hazira LNG terminal in Gujarat.
Reference- ET, The Hindu