India-based natural gas distribution company Adani Gas (AGL) has signed a definitive agreement to three geographical areas namely Ludhiana, Jalandhar and Kutch (East) in India for an undisclosed sum.
The Indian firm said that the acquisition grows the company’s footprint from 19 to 22 geographical areas (GAs).
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The three areas have high volumes potential of over 6.5 million standard cubic feet per day of piped natural gas (PNG) and compressed natural gas (CNG) in terms of demand, over a period ten years.
Adani Gas said that the newly added geographical areas in its portfolio come under Phase I of the National Highways Authority of India’s (NHAI’s) Bharat Mala Pariyojana project.
The company expects that there will be further development in the areas, leading to increased demand for gas.
Ludhiana and Jalandhar are twin cities in the northern state of Punjab, while Kutch (East) is located in the state of Gujarat.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAccording to Adani Gas, the availability of pipeline connectivity in the ‘vicinity’ of all the three geographical areas will provide the company opportunity for early monetisation.
Adani Gas CEO Suresh P Manglani CEO said: “These three GAs offer high PNG and CNG volumes together with excellent infrastructure growth opportunities. Adani Gas tally of GAs shall now increase to 22 GAs.
“This transformational acquisition shall allow AGL to supply cleaner fuels – PNG in fulfilling much awaited aspirations of large number of homes, Commercial and Industrial consumers, Gurudwara, hotels, restaurants and environmental friendly CNG to automotive consumers in Ludhiana, Jalandhar and Kutch (East) GAs.
“This initiative by AGL shall further support the vision of central and state governments to provide PNG and CNG to all.”
The transaction is, however, subject to receiving approvals from regulatory authorities.
In August, a joint venture (JV) of Adani Gas and French oil major Total reportedly seeked government approval to open retail fuel stations across India.
In October last year, Total signed an agreement to acquire a 37.4% stake in Adani for $600m.
