Adani, Total join hands to set up retail network, LNG terminal

India's largest infrastructure conglomerate Adani Group and French energy giant Total SA Wednesday announced a partnership to develop liquefied natural gas (LNG) import terminals and fuel retailing network in India.

Total, which had a few weeks back exited Royal Dutch Shell-led Hazira LNG import terminal in Gujarat, will join Adani in developing a 5 million tonnes a year import facility at Dhamra in Odisha.

The two will also set up a joint venture to roll out a fuel retail network of 1,500 outlets, mostly on highways, in the next 10 years, Adani and Total said in a joint statement.

While the two firms did not indicate details of the deal, including how much stake Total was picking up, sources privy to the development said the agreement signed was a preliminary collaboration pact and details would be announced later.

Also, Total is eyeing a stake in city gas distribution projects of Adani but talks are stuck on valuation.

"Adani and Total have signed an agreement to jointly develop multi-energy offerings to the Indian energy market. The diversified portfolio includes LNG and fuel retail," the statement said.

Total, the world's second-largest LNG private player, and USD 11 billion Adani Group, which has interests in energy, infrastructure, ports and edible oil, "will serve the fast-growing gas demand of the Indian market," it said.

"The partnership has set a target of developing various regasification terminals including Dhamra LNG on the east coast of India," it added. "Most essentially, it would be a big stride towards India's vision of achieving a healthier energy mix through the promotion of LNG."