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    India Will Boost Total's LNG: Pouyanne

Summary

Total October 14 announced it will spend $600mn on a 37.4% stake in Indian private city gas distribution company, Adani Gas.

by: Shardul Sharma

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India Will Boost Total's LNG: Pouyanne

India will contribute to the growth in the cash flow of Total’s LNG business within a few years, Total CEO Patrick Pouyanne said October 14 on the sidelines of India Energy Forum by Ceraweek.

“In LNG business, Total has [at present] a cash flow of about $2bn and we are targeting to reach $6bn by 2025. The Indian market will contribute to this growth,” he said.

Total October 14 announced it will spend $600mn on a 37.4% stake in the privately owned city gas distribution company, Adani Gas, part of Adani Group. As part of the partnership, Total said it will supply LNG to Adani Gas and will also form a joint venture to market LNG in India and Bangladesh.

Adani Gas and Total in the coming years will target to build a fuel retail network of 1,500 retail stations, on the main roads of the country, such as highways and intercity connections. Adani Gas will also be setting up 1,500 compressed natural gas stations for gas distribution over the next 10 years across 71 districts, 68 towns across 15 states in India. In addition, Adani Gas plans to distribute gas to 6mn households in the next decade.

Total and Adani Group already have an equal joint venture to develop LNG regasification terminals in India, including the proposed Dhamra LNG terminal on the east coast of India. Adani Group, along with Gujarat state-run GSPC, also operates a 5 million metric tons/yr terminal at Mundra in the western state of Gujarat. The Mundra terminal was inaugurated last year but has not become operational yet due to a commercial dispute between GSPC and Adani Group.

Mundra terminal could “potentially” become an asset of the Total and Adani Group joint venture once the dispute between GSPC and Adani Group is settled, Pouyanne said. “But first we have to let Adani Group conclude its discussions with GSPC and we will not interfere,” he said.

Mozambique well placed to supply LNG to India

Pouyanne said Total is the second-biggest private LNG player in the world and will have a marketing portfolio of 50mn mt/year by 2025. He added that Mozambique LNG project, where Total has an operating stake, is perfectly placed to efficiently supply LNG to India.

Last month, Total closed its $3.9bn purchase of an operating stake in the Mozambique LNG project from Anadarko Petroleum. Two Indian entities, ONGC Videsh and BPRL Ventures Mozambique, own a significant stake in the project.

In addition to servicing the Bangladesh market through Adani Gas, Total is also looking to supply LNG to Pakistan. The company is already in talks with entities in Pakistan to supply LNG, Pouyanne said.

Eyeing greater role in Indian renewable space

Total has a joint venture with its compatriot EDF in India which is producing around 200 MW - 300 MW of power and according to Pouyanne, it is going to reach 1 GW in the coming future. With renewable energy space growing at a fast pace in India, Total is also looking to work with the Adani Group in the solar energy sector.

“This is clearly another topic of potential cooperation with the Adani Group, which is quite large in solar. We are looking at ways to expand this partnership. Today it is premature, but clearly Total has great ambition, and we plan to have 25 GW of solar in the world, and India is an important market for us,” he said.