Adani Gas has signed a definitive agreement for the acquisition of three Geographical Areas (GA) — Ludhiana, Jalandhar and Kutch (East) — from a consortium led by Jay Madhok Energy.
All three GAs have high volumes potential in terms of demand of over 6.5 MMSCMD (million metric standard cubic meter per day) over a period of 10 years. These GA’s are under Phase 1 of Bharatmala Pariyojana by NHAI, which will boost the development and volume growth.
Ludhiana and Jalandhar are twin cities of Punjab and are major industrial and commercial hubs with very high-volume potential of CNG and PNG homes. Both cities are in the vicinity of the pipeline connectivity. Kutch (East) in Gujarat is poised to take centre stage for the development in Gujarat.
AGL has strong presence in Gujarat. Kutch (East) is well connected with pipeline and R-LNG terminal infrastructures making Kutch (East) an attractive destination for the development of CGD network, the company said.
Given the availability of pipeline connectivity in the surroundings, all the three GAs shall offer early monetisation opportunity to AGL.
With the addition of these three GAs, AGL shall now have a presence in 22 GAs as standalone entity.
The transaction is subject to necessary regulatory and other customary approvals. Speaking on the occasion, Suresh P Manglani, CEO, Adani Gas said, “These three GAs offer high PNG and CNG volumes together with excellent infrastructure growth opportunities. Adani Gas tally of GAs shall now increase to 22 GAs. This transformational acquisition shall allow AGL to supply cleaner fuels — PNG in fulfilling much-awaited aspirations of a large number of homes, Commercial and Industrial consumers, Gurudwara, hotels, restaurants and environmental friendly CNG to automotive consumers in Ludhiana, Jalandhar and Kutch (East) GAs. This initiative by AGL shall further support the vision of central and state governments to provide PNG and CNG to all.”