Total-Adani Indian joint venture to apply for fuel retail licence
Total Adani Fuels Marketing Pvt Ltd, a joint venture between French energy company Total SA and Adani Gas Ltd., said it plans to apply for a fuel retail licence soon under India’s new liberal fuel retailing rules.
The joint venture plans to build a retail network of 1,500 within 10 years, with a multi-fuel offering, including natural gas, petrol, diesel, and electric vehicle charging facilities.
India has become a lucrative market for global oil majors after the government removed controls on the retail pricing of gasoline and gasoil and relaxed rules for setting up fuel stations in the country, the world’s third biggest oil consumer and importer. Last year, the government had lowered the barrier to entry from INR2,000 crore (USD266 million) to INR250 crore (USD33 million).
British oil major BP has already teamed up with Reliance Industries in a fuel retailing joint venture.
Last October, Total SA agreed to acquire a 37.4% stake in city gas distributor Adani Gas Ltd for approximately USD500 million.
“Definitely we will take full benefit of the expertise and strength of Total,” said Adani Chief Executive Officer Suresh Manglani.
Manglani said Total has gotten a second seat on Adani Gas board after the appointment of Jose Ignacio Sanz Saiz, who is vice-president for gas, renewables, and power in India and country chair of Total.
“Currently we are focusing on CNG development. But a separate company, Total-Adani Fuels Marketing Ltd will come into fuel retailing in the future. That plan is being developed,” he said.
The Gautam Adani-led utility firm sells piped natural gas (PNG) to households and compressed natural gas (CNG) for vehicles and aims to diversify into retail sales of other fuels through this joint venture.