Adani Total Gas to Invest Rs 18,000 Crore on CGD Infrastructure

Adani Total Gas Ltd. is strategizing an investment of Rs 16,000-Rs 18,000 crore for the establishment of city gas distribution infrastructure in various regions over the next seven to eight years, as outlined by CEO Suresh P Manglani.

Adani Total Gas is a joint venture between the Adani Group and TotalEnergies, committed to revolutionizing India’s gas landscape. The company focuses on the production, distribution, and marketing of natural gas. With an emphasis on sustainable energy solutions, Adani Total Gas plays a crucial role in expanding the reach of clean and affordable natural gas across various sectors.

Following the 11th round of geographical area allocations by the Petroleum and Natural Gas Regulatory Board, the company has obtained CGD licenses encompassing 52 geographical areas spanning 124 districts. As the 12th round progresses through the bidding stage, with allocations anticipated in February-March, the company is positioning itself for increased capital expenditure.

Mr Manglani, emphasized the company’s commitment to intensifying investments in infrastructure development for geographical areas awarded in the 9th and 10th rounds. Looking ahead, there are plans to further enhance investments for areas awarded in the 11th round.

Anticipating a nationwide drive by the government to promote the use of PNG and raise awareness among the masses, Mr Manglani sees this as a catalyst for augmenting the volume of natural gas in the energy mix. He expressed optimism that this initiative would yield favorable outcomes for both CGD companies and consumers alike.

Acknowledging the supportive policies implemented by the government, Mr Manglani highlighted the imposition of a ceiling of $6.5/MMBtu on administered price mechanism (APM) gas. Additionally, he pointed out the upper limit set on high-pressure-high-temperature gases auctioned by domestic oil explorers, which proves beneficial for CGD companies in managing and controlling their costs.

Mr Manglani underscored the importance of this support, noting that the company receives a portion, ranging from 50-60%, of its APM gas allocation from the government. He discussed the trends in regasified LNG prices, noting a gradual moderation in the price curve. Looking ahead to the later part of FY26, he anticipates an excess supply of regasified LNG, which he believes will be advantageous for the company.

With multiple LNG terminals in the pipeline, this excess supply is expected to benefit not only the company but also other CGD companies and consumers. Overall, Mr Manglani is optimistic about the industry’s trajectory, citing the combined impact of government initiatives, policy support, and favorable market conditions.