Total, Adani Ink India LNG Terminals Pact
French oil and gas major Total and Indian private conglomerate Adani Group October 17 announced they will jointly develop LNG terminals and fuel retail outlets in India.
But the statement was sketchy on the LNG aspects of the partnership. The two firms set a target of developing various regasification terminals, including the proposed Dhamra LNG terminal 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,” the two companies said in a joint statement.
Total and Adani did not say anything about the recently commissioned 5 million metric tons/yr terminal at Mundra in the western state of Gujarat. Mundra terminal has been developed by GSPC LNG, a joint venture between Gujarat state-owned GSPC and Adani. As Mundra was not cited in Total's statement, it is presumed to fall outside the new Total/Adani partnership.
“The partnership between Total and the private Adani Group illustrates our joint commitment to assisting India to diversify its energy mix,” said Total CEO Patrick Pouyanne.
“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,” Adani Group chairman Gautam Adani added.
Press Trust of India had reported October 15, citing sources, that Total was in talks to buy up to a 50% stake in Ahmedabad-based Adani Group's LNG terminals and city gas interests. Pouyanne confirmed the following day that Total was in talks with India companies about acquiring stakes in LNG import terminals. The joint statement did not say anything about how large a stake Total will buy in Dhamra terminal.
Total announced late August its plan to sell its 26% interest in the 6.7mn mt/yr Hazira LNG import terminal in western India, opened in 2005, to Shell which already owns the other 74% stake. The French group, with a worldwide supply portfolio of some 40mn mt/yr, is the world's second-largest non-state LNG supplier after Shell.
Total and Adani will also create a joint venture with an objective to build a retail network of 1,500 service stations over the next ten years on India's main road highways and intercity connections.