Ahmedabad: In the largest foreign direct investment in city gas distribution sector by a global energy major, French multinational Total will buy 37.4 per cent stake in Adani Gas to develop multi-offerings in the Indian energy market.
"Adani is delighted to deepen its strategic partnership with Total to one of the largest downstream gas partnerships in India," said Adani Group Chairman Gautam Adani. "Total's investment in Adani Gas reinforces India's natural gas and demand potential," he said in a statement on Monday.
Adani Family and Total SA shareholders will each hold 37.4 per cent stake and public shareholders will hold remaining 25.2 per cent.
"The partnership will derive significant synergies between Adani's capabilities of developing world-class assets and Total's global best practices as well as leveraging business synergies across liquefied natural gas (LNG), fuel retail and city gas distribution," said Adani.
"We look forward to working together towards delivering India's vision for clean and green energy."
City gas distribution is a natural extension of the plans of both partners to invest in infrastructure and assets worth over one billion dollars (about Rs 7,100 crore), which span LNG infrastructure and marketing and fuel retail business announced in October 2018.
A statement issued by the company said this demonstrates both partners' commitment to this important partnership and confidence in Adani Gas as the leading gas distribution player and commitment to the government's vision to provide benefits of piped natural gas and CNG to 70 per cent population of the country.
The partnership and equity support from the partners will help Adani Gas accelerate project executions in all its new geographical areas.
This strategic partnership expansion will create among the largest downstream energy businesses in India. Adani Gas will also set up 1,500 CNG stations for gas distribution over the next 10 years in its and its joint ventures' geographical areas across 71 districts, 68 towns across 15 states in India.
In addition, Adani Gas and its joint venture will distribute gas to 6 million households in the next decade.