According to its CFO, Adani Total Gas Ltd., a partnership between Gautam Adani’s billionaire group and French energy giant TotalEnergies, will invest between Rs 18,000 and Rs 20,000 crore over the next 8 to 10 years to expand infrastructure for retailing CNG to automobiles and piping gas to homes and businesses.
The company has 52 licenses that encompass 124 districts across the nation and sells CNG to vehicles as well as pipes gas into homes’ kitchens for cooking. About 7 lakh people use its piped cooking gas, which is available at 460 CNG stations across the nation.
In order to meet the rising demand for cleaner fuel in the nation, it is planning to expand both its network of CNG stations and the pipeline system that carries the gas to homes and businesses.
According to Parag Parikh, chief financial officer of Adani Total Gas Ltd. (ATGL), the business invested more than Rs 1,150 crore (about $1.150 billion) in new infrastructure in 2022–2023 (April 2022–March 2023).
In the long run, we remain positive about the possibilities for gas. Since petrol is still a preferred clean energy source with excellent user safety, customer confidence, and delivery convenience, reducing pollution is given more importance, according to Parikh.
The company intends to invest more money in developing infrastructure and growing its network.
In order to expand our customer base and maintain revenue growth, he said, we plan to invest roughly Rs 18,000–20,000 crore in our city gas distribution (CGD) business over the next 8–10 years.
ATGL CEO Suresh P. Manglani stated that the company’s objective is to expedite the construction of CNG stations throughout the licences in which it operates in order to achieve early monetization.
He stated, “I am pleased to share that your organisation is going to develop over 1,800 CNG stations in the next seven to ten years and is committed to linking every family across all of our geographical areas (GAs) seeking to have cleaner and greener piped natural gas in their kitchen.“
The company has begun expanding its portfolio of options, including compressed biogas (CBG), compressed natural gas (CNG), and EV charging, in addition to expanding its main business of gas distribution.
He predicted that we will soon have expanded our service offerings to include a variety of clean fuels that address various applications for various consumers, solidifying our position as a one-stop shop for all service needs.
India wants to boost the portion of natural gas in its economy—which is less harmful to the environment than liquid fuels—from 6% to 15% by 2030. And the government is giving city gas priority in this regard.
Adani TotalEnergies E-mobility Limited (ATEL), a wholly owned subsidiary of ATGL, was established to enter the fast-expanding e-mobility market. ATEEL is now working to install EV charging infrastructure for two-, three-, and four-wheel vehicles (including buses) at various places throughout the nation.
ATGL now offers 104 charge stations spread over 26 locations across the nation. It plans to expand this to more than 3,000 EV charging stations around the nation.
To take advantage of India’s enormous potential for biomass-derived energy, ATGL has created the wholly owned subsidiary Adani TotalEnergies Biomass Limited (ATBL). A 600-ton-per-day feedstock processing capacity Compressed Biogas (CBG) plant, one of India’s largest, is now being constructed by ATEBL at Barsana near Mathura in Uttar Pradesh.
According to the CFO, “ATGL is at the right time, at the right place, and in the right business to capitalise on economies and generate healthy financials going forward.”
