A leading player in India’s energy sector focuses on distributing natural gas to industrial, commercial, and residential customers. Operating a robust network of city gas distribution systems, it supplies piped natural gas (PNG) and compressed natural gas (CNG).
As a joint venture with a global energy leader, the company is dedicated to enhancing India’s energy infrastructure and promoting sustainable energy solutions. Its extensive reach and strategic partnerships position it as a key contributor to the country’s transition towards cleaner energy.
Recent Updates
The company is pushing into new territory with its LNG venture for the transport and mining sectors. They’ve already launched their first LNG station in Tirupur, Tamil Nadu, marking the start of an ambitious expansion. CEO Suresh Manglani shared plans to build 50 LNG retail outlets across India’s major highways, ports, mines, and industrial areas. This network will require an investment between Rs 200-250 crore over 3-5 years.
Cost Variance
The cost difference between LNG and traditional fuel stations is significant. An LNG station demands Rs 8-12 crore investment, while regular fuel outlets need only Rs 1.5 crore. Oil companies now look to add LNG facilities to existing CNG stations. Better roads and competitive LNG prices make long-haul trucking with LNG more appealing.
Competition
State-owned Gail India has already committed Rs 650 crore earlier this year, to build LNG stations along major highways and mining areas, targeting 50% market share by 2030.
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Impact
This shift makes sense for mining operations, where diesel currently powers trucks and equipment. The LNG for Transport and Mining initiative will open fresh opportunities for Adani Total Gas Limited, a joint venture between Adani Gas and French energy company Total Gas.
Share Price
Shares of Adani Total Gas Limited are trading at Rs.726, 0.57% higher from its previous close of Rs. 722 at 10:44 am on Wednesday, November 06, 2024.
Conclusion
Adani Total Gas’s strategic LNG expansion signals a transformative phase in India’s energy sector. Their plan for LNG stations demonstrates clear market foresight. Despite higher setup costs compared to traditional fuel stations, the growing LNG infrastructure promises significant returns. With Gail India’s parallel investment and improving road networks, the LNG transport sector looks promising.
Written By: Dipangshu Kundu
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