Adani Total Gas Ltd to invest Rs 20,000 cr in CGD sector in next 8 years

Ahmedabad: Adani Total Gas Ltd (ATGL), India's largest private CGD company and a joint venture between the Adani Group and TotalEnergies, has won licenses to expand its city gas distribution (CGD) network to 14 new Geographical Areas (GAs) in the recently concluded 11th round of CGD bidding by the Petroleum and Natural Gas Regulatory Board (PNGRB). ATGL is now the largest city gas distribution company catering to 52 GAs, 19 of which are operated along with its strategic JV partner Indian Oil Corporation Ltd (IOCL). These 52 GAs account for 15 percent of the country covering 124 districts across 18 states and 3 UTs.

"Adani Total Gas is one of India's pioneers in environment-friendly piped natural gas (PNG) and compressed natural gas (CNG). Now with the authorization of additional 14 geographical areas, our presence expands from 39 to 95 districts," said ATGL's CEO Suresh Manglani.

"With strong support from the Adani Group and TotalEnergies, Adani Total Gas is committed to the expeditious development of CGD networks across all these new 52 districts. ATGL will now be catering to 10 percent of the country's population with cleaner fuel for households as well as for transportation. Therefore, ATGL is fully committed to playing a pivotal role in meeting the clean energy needs of India and this strategic expansion is fully aligned with our commitment to nation-building," he added.

With an increasing basket of products and services in the clean energy sector, Adani Total Gas is committed to providing convenient and environment-friendly natural gas for cooking and water heating to more than 9 million households, economic transport fuel for vehicles by establishing around 2,000 CNG Stations and clean fuel to industrial and commercial consumers. To achieve these ambitions, ATGL will be investing Rs 12,000 crore. in these 14 additional GAs, taking ATGL's total commitment in the clean energy sector to Rs 20,000 crore.

Backdrop

A total of 65 GAs were on offer under the 11th CGD bidding round and bids were received for 61 GAs. Out of the 52 GAs for which winners have been declared by the PNGRB on January 28, Adani Total has bagged the largest number of areas at 14, followed by MEIL at 12 and Indian Oil at eight. Disinvestment-bound Bharat Petroleum Corporation Ltd (BPCL) has bagged four GAs, while GAIL (India) Ltd and Hindustan Petroleum Corporation Ltd (HPCL) bagged one area each. 

Adani Total Gas has secured a total of three GAs in Assam and Chhattisgarh, four in Maharashtra, one each in Jharkhand and Odisha and two in Madhya Pradesh. MEIL secured four areas each in Madhya Pradesh and Tamil Nadu and one each in Karnataka, Maharashtra, Telangana and Odisha.

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