Total Eyes Stake in Adani's India Gas Projects: Report

France’s Total is in talks to buy up to 50% stake in Adani Group's gas projects in India, according to a report published by Press Trust of India October 14.

Total is looking to buy into Adani’s LNG terminal projects in the western state of Gujarat and eastern state of Odisha, city gas projects and an under-construction LPG import facility, sources have told the news agency. Adani holds 25% stake in the Gujarat LNG terminal, which was inaugurated earlier this month. The Indian company is also building an LNG import terminal at Dhamra in Odisha. According to Press Trust of India, Total is in talks to buy half of Adani's stake in the two terminals.

The French firm is also eyeing a 50% stake in Adani's under-construction LPG import terminal at Mundra in Gujarat as well as a stake in Adani's city gas distribution (CGD) projects, Press Trust of India said, adding that a preliminary pact may be signed this week during the visit of Total CEO Patrick Pouyanne to India.

Adani Gas, a subsidiary of Adani Enterprises, is developing CGD networks to supply piped natural gas (PNG) to the industrial, commercial, domestic (residential) units and compressed natural gas (CNG) to the transport sector. It already has set up city gas distribution networks in Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh.

Adani Gas was the biggest winner in the recently concluded ninth CGD bidding round which was launched by the Indian government earlier this year. Adani Gas has emerged as the biggest winner with rights to develop CGD infrastructure for 13 areas by itself. The company also bid for licences jointly with state-owned Indian Oil Corporation. The joint venture has won licences to develop CGD infrastructure in nine areas.