Adani-Total Gas to pump in `20k cr

New Delhi Adani Total Gas Ltd, the joint venture of billionaire Gautam Adani’s group and French energy giant TotalEnergies, will invest Rs18,000 crore to Rs20,000 crore in the next 8 to 10 years to expand infrastructure for retailing CNG to automobiles and piping gas to households and industries, its CFO said.

The company retails CNG to automobiles and pipes gas to household kitchens for cooking purposes in 52 licences that cover 124 districts of the country. It has 460 CNG stations in the country and about 7 lakh consumers of its piped cooking gas.

It is looking to expand its network of CNG stations as well as pipeline network that takes the gas to household kitchens and industries, to tap into the country’s growing appetite for cleaner fuel. In the company’s latest annual report, Adani Total Gas Ltd (ATGL) chief financial officer Parag Parikh said the company invested over Rs1,150 crore in 2022-23 (April 2022 to March 2023) for creating additional infrastructure.

“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.

The firm is looking at investing more in creating infrastructure and expanding its network. “For our city gas distribution (CGD) business, we intend to invest around Rs18,000-20,000 crore in the next to 8-10 years to build infrastructure that widens our customer base and sustains revenue growth,” he said.

AGTL CEO Suresh P Manglani said the firm’s strategy is to fast-track steel pipeline laying and build CNG stations faster across the licenses where it operates for early monetization.