Adani Total Gas Ltd Plans to Invest Rs 20,000 Crore to Expand City Gas Infrastructure

Adani Total Gas Ltd, the joint venture between Gautam Adani’s group and TotalEnergies, is set to make a significant investment of Rs 20,000 crore over the next 8 to 10 years.

This investment is earmarked for the expansion of the company’s city gas infrastructure, encompassing the retailing of compressed natural gas (CNG) and the distribution of gas to households and industries. Currently operating 460 CNG stations and supplying piped cooking gas to approximately 700,000 consumers, Adani Total Gas Ltd aims to meet the surging demand for cleaner fuel while expanding its customer base.

Adani Total Gas

In their recent annual report, Adani Total Gas Ltd’s Chief Financial Officer, Parag Parikh, highlighted the company’s commitment to creating additional infrastructure. In the fiscal year 2022-23, the company had already invested over Rs 1,150 crore, demonstrating its long-term optimism regarding the prospects of gas as a preferred clean energy source.

“From a long-term perspective, we continue to be optimistic of gas prospects. There is a larger priority to moderate pollution as gas remains a preferred clean energy source with high user safety, customer trust and delivery convenience,” Parikh said.

Parikh emphasized the importance of gas in mitigating pollution, its high user safety standards, customer trust, and delivery convenience.
ATGL CEO Suresh P Manglani outlined the company’s strategic approach to accelerate the laying of steel pipelines and expedite the construction of CNG stations across their operational licenses.

With the objective of early monetization, the company plans to build over 1,800 CNG stations in the next 7 to 10 years, aiming to connect homes across all their geographical areas with cleaner and greener piped natural gas for kitchen use. Additionally, Adani Total Gas Ltd is diversifying its portfolio by venturing into compressed biogas (CBG) and electric vehicle (EV) charging, aligning with the increasing demand for sustainable fuel alternatives.

“For our city gas distribution (CGD) business, we intend to invest around Rs 18,000-20,000 crore in the next to 8-10 years to build infrastructure that widens our customer base and sustains revenue growth,” he said.

India’s government has set a target of achieving a 15% share of natural gas in the country’s energy mix by 2030, a significant increase from the current 6%. City gas distribution is a key priority for the government in realizing this goal.

“I am happy to share that your company is going to build over 1,800 CNG stations in the next 7-10 years and committed to connecting every home across all our geographical areas (GAs) desiring to have cleaner and greener piped natural gas in their kitchen,” he said.

The recent move by the government to cap the cost of natural gas is expected to bring stability to prices and prioritize availability to the city gas distribution network. This stability and predictability in pricing will empower companies like Adani Total Gas Ltd to enhance their services and accelerate the country’s fuel preference in line with the government’s policy.

Adani Total Gas Ltd has also embraced new opportunities in the emerging sectors of e-mobility and biomass. The company has established a wholly owned subsidiary, Adani TotalEnergies E-mobility Limited (ATEL), to capitalize on the rapidly growing segment of electric vehicles (EVs). ATEL is currently setting up EV charging infrastructure across the country for various types of vehicles. With 104 charging points already in operation, Adani Total Gas Ltd plans to scale up to over 3,000 EV charging points nationwide.

“Foraying into the rapidly growing segment of e-mobility, ATGL has formed a wholly owned subsidiary, Adani TotalEnergies E-mobility Limited (ATEL). Presently, ATEEL is engaged in setting up EV charging infrastructure for two, three and four-wheelers (including bus) at various locations across the country”.

Additionally, through its wholly-owned subsidiary, Adani TotalEnergies Biomass Limited (ATBL), the company aims to tap into India’s vast potential for biomass-derived energy. ATBL is currently constructing one of India’s largest Compressed Biogas (CBG) plants, which will have a processing capacity of 600 tonnes per day.

With its strategic investments and diverse range of clean fuel offerings, Adani Total Gas Ltd is poised to capitalize on the opportunities presented by the growing demand for cleaner energy sources. The company’s commitment to expanding its infrastructure and delivering sustainable energy solutions positions it favourably for strong financial performance in the foreseeable future.