French petroleum company Total has now given a clear indication of playing a big role in India’s petroleum sector by buying a stake in Adani Gas. The company has entered into an agreement to buy a 37.4 percent stake in Adani Gas. The company will invest around Rs 5,700 crore for this equity. The total investment has come when the Indian government is trying to attract more and more foreign investment in the petroleum sector. It is believed that Total and Adani will further explore possibilities in the petroleum sector.
Total had earlier announced its foray into India’s gas sector and also formed a joint venture with giant petroleum company Shell. The aim was to build an LNG terminal at Hazira, Gujarat. But Total broke out in August 2018 and formed another joint venture with Adani to install 1,500 petroleum pumps over 10 years.
Total is a major company in the distribution of petroleum products in Europe, Africa, America. Now she, along with Adani, can place bets for BPCL in the public sector as well. However, Total is the second company to announce a large-scale entry into India’s petroleum sector in recent times. Earlier, the Saudi Arabian oil company announced the purchase of 20 percent equity in Reliance Industries, the country’s largest company in the petroleum sector. The total investment here will be around $ 15 billion.
However, it has now been told by Total that in the first phase, 25.2 percent equity in Adani Gas will be purchased through open tender. After this, the equity will be increased to 37.4 percent. The Adani Group’s equity in Adani Gas currently stands at 74.8 per cent, which will be further reduced to the equivalent of Total (37.4). The company will complete the first LNG terminal to be set up in Odisha. From here gas will be supplied to India as well as Bangladesh.
In the information released by the Adani Group, it has been said that in the next 10 years, a road map for heavy investment in India’s petroleum sector is being prepared. The company is currently working towards building a network of 1,500 petrol pumps, 1,500 gas stations and gas supply to 6 million homes.