Total, Adani in LNG joint venture
17 Oct 2018
French energy giant Total and Indian infrastructure major Adani Group have signed an agreement to jointly develop various regasification LNG terminals, including Dhamra LNG, on the East coast of India. The two will also jointly develop a network of 1,500 gas service stations in the country.
The two companies have agreed to enter into a strategic partnership to jointly develop multi energy projects, including liquefied natural gas (LNG) and fuel retail outlets, to cater to the Indian energy market.
Total and Adani will create a Joint Venture with an objective of building a retail network of 1,500 service stations over the next 10 years, to take advantage of a market growing at 4 per cent per year, Total stated in a release.
The joint venture will tap the country’s growing highway infrastructure and the main roads of the country, and intercity connections for setting up gas service stations that would cater to countries growing middle class. These new service stations, which will be 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, according to the company.
“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 energy market, as well as its access to infrastructures through a significant footprint in several of the country’s key ports,” Patrick Pouyanné, chairman and CEO of Total, stated in the release.
“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,” Adani Group chairman Gautam Adani said while speaking on the occasion.
Ahmedabad-based Adani Group is an Indian private conglomerate active in 50 countries and specialized in commodities trading, port infrastructures and logistics, as well as energy production and distribution. The company has interests in resources, energy, and agro, real estate, public transport infrastructure, finance and defense as well.
Paris-based Total SA, the world’s second largest LNG private player, and one of the seven "Supermajor" oil companies in the world, has businesses covering the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. Total is also a large scale chemicals manufacturer and a major player in low-carbon energies.