With an objective to re- enter the South Asian LPG market and develop 1,500 retail service stations over the coming ten years, Total, French oil major has signed a deal with Adani Group, the Indian conglomerate.
Multi- energy offerings including LNG regasification terminals on the country’s east cost have been planned to be developed by the companies pertaining to the increasing demand for cleaner- burning fuel; according to a joint statement issued by the companies.
Total’s chairman and CEO, Patrick Pouyanne said in a statement that compared to other world economies, India’s energy consumption will grow the fastest over the next decade.
India’s expectant rapid growth in fuel demand has attracted other oil majors such as Saudi Aramco, Russia’s Rosneft and Abu Dhabi National Oil Co (ADNOC).
A 40% overall increase in the global oil demand by 2040 is expected by India according to the estimates by OPEC.
Currently, gas occupies a 6.5% in India’s energy mix, which the country is planning to increase to 15% in the coming years with the aim of reducing its carbon footprint.
India’s improving infrastructure and a growing middles class is the reason behind building the retail service station network on main roads including highways and intercity connections according to the statement by the companies.
Given the long- term supply deal between Adani and GAIL which is India’s state- owned gas supplier and developer; the partnership between Total and Adani will include the development of Dhamra LNG import terminal.
According to Pouyanne’s statement on the sidelines of a conference in New Delhi on Tuesday, Total is aiming to market LNG from its own portfolio in India. The company is also working towards obtaining a license to enter the fuel retailing market in India.
Total exited the Hazira LNG terminal in western India, selling its 26% stake to its partner Royal Dutch Shell in the project, as Shell wanted greater control in the project according to Pouyanne’s statement on Tuesday.