Total Eyes India LNG Assets

Total's CEO Patrick Pouyanne has confirmed that the French firm is in discussions with multiple Indian companies about acquiring stakes in LNG import terminals and city gas distribution projects. 

He made the comment October 16 to reporters on the sidelines of India Energy Forum by CERAWeek in Delhi.

Press Trust of India had reported October 15, citing sources, that Total is in talks to buy up to a 50% stake in Adani Group's LNG terminals and city gas interests.

Adani holds a 25% stake in an LNG import terminal in the western Indian state of Gujarat that was inaugurated earlier this month and is also building another such LNG terminal at Dhamra in Odisha, eastern India. Total is in talks to buy half of Adani's interest in both terminals, according to the news agency.

Total has a 26% interest in the 6.7mn mt/yr Hazira LNG import terminal in western India that opened 2005, with Shell owning the other 74% stake. In August Shell said it will buy out Total's stake in the terminal. 

Investments by the French firm in new capacities could have future synergies with Total’s ambitions in Russia. At present Total has a worldwide LNG portfolio of 40mn mt/yr and, thanks to its participation in large Russian LNG projects, may boast a portfolio close to 55-60mn mt/yr by 2030, Pouyanne said from the podium at the same Delhi event October 16.

Total has a 20% stake in the 16.6mn mt/yr Yamal LNG venture, alongside operator Novatek with 50.1%, with China’s CNPC and the Silk Road Fund holding 20% and 9.9% respectively. Total is also a partner in the proposed 19.8mn mt/yr Arctic LNG 2 project. Pouyanne said that these Russian projects will have the advantage of being just 20 days away from major markets like China, Japan and South Korea thanks to the new LNG shipping route opening up, known as the Northern Sea Route.