French multinational oil and gas company Total SA has reportedly announced to have signed an agreement with Gautam Adani-controlled Adani Group to invest in the downstream sector in India. As per trusted sources, the world’s second-largest LNG provider would enter the fuel retailing segment through 1,500 service stations and develop various LNG projects across the nation.
Both the firms issued a joint statement which noted that the partnership intends to develop several regasification terminals including Dhamra LNG in Odisha and has planned to jointly develop multi-energy offerings to the world’s fastest-growing gas market.
According to a report published by The Hindu Business Line, both the companies have agreed to establish a joint venture to create a retail network of around 1,500 service stations in the next 10 years. These service stations would reportedly be built on the main roads of the nation such as intercity connections and highways.
Both the firms reportedly aim to benefit from a market that has been registering a growth rate of 4% per annum and is majorly driven by the emergence of the middle class along with rapid development of road infrastructure. Sources privy to the matter state that the retail network would comply with global standards and offer fuels such as lubricants and other services as well.
A statement released by Adani Group noted that the combined efforts of both the firms would provide long-term value for the economy and widespread benefits for the people of India. The company anticipates to positively impact millions of lives with the new partnership and by leveraging the domain expertise in the energy segment, the statement further added.
For the record, Adani Group presently holds 25% stake in the LNG import terminal in Mundra, Gujarat. The company owns a stake in another under-construction terminal at Mundra which is slated to be completed by next month.