French oil company Total SA will buy a 37.4% stake in Indian gas company Adani Gas Ltd. Both companies will also form a joint venture for marketing natural gas in India and Bangladesh, According to Total’s statement on Monday.
Total will buy a 37.4% stake in Adani Gas from Adani Group, which currently owns a 74.8% stake. Total will make an open offer to public shareholders to acquire up to 25.2% of equity shares before purchasing the remaining shares from Adani. This is following Indian stock market regulations and subject to regulatory approvals.
Total also expands its cooperation with Adani Group through two imports and regasification LNG terminals. Total’s move signifies the trend of global oil majors and commodity traders expanding in South Asia due to growing LNG markets in the region.
Natural gas contributes to 7% of the country’s energy consumption and grows at 5% annually in the past three years. The Indian government’s supportive policy aims at raising natural gas share to 5% by 2030. It also intends to develop domestic use of gas as fuel for vehicles.
