Total-Adani joint venture to apply for petrol pump licence
New Delhi: A newly formed joint venture of French supermajor Total and an Adani group firm will soon apply to the government for permission to open petrol pumps in India, Adani Gas chief executive said.
Total-Adani Fuels Marketing Ltd will apply for licences to offer the full bouquet of auto fuels at retail outlets, Adani Gas CEO Suresh Manglani said in first-quarter earnings call.
Last year, Total had bought 37.4 per cent stake in billionaire Gautam Adani-promoted Adani Gas to enter the world's fastest-growing fuel market.
"Definitely we will take full benefit of the expertise and strength of Total," he said.
Total-Adani Fuels Marketing Ltd, which is a subsidiary of Adani Gas , will offer natural gas, petrol, diesel, and electric vehicle charging facilities.
He said the joint venture will seek licence under the liberalised fuel retailing regime announced by the government.
Last year, the government allowed any entity with a net worth of Rs 250 crore to set up petrol pumps in the country.
This replaced the earlier regime of only companies that have invested Rs 2,000 crore in either hydrocarbon exploration and production, refining, pipelines or liquefied natural gas (LNG) terminals to be allowed to retail fuel in the country.
Manglani said Total has got 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. We will be offering multi-fuel to customers," 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.
Total, which in August 2018 exited a JV with Royal Dutch Shell in a 5 million tonne liquefied natural gas (LNG) import terminal at Hazira in Gujarat, had in October last year announced the acquisition of the stake in Adani Gas.