India is at the centre of future demand wave: TotalEnergies' Sang Ratnam

TotalEnergies plans to ramp up LNG supplies to India, study expansion of Dhamra terminal, and deepen partnerships amid rising demand and geopolitical risks

Energy giant TotalEnergies, based in France, is deepening ties with Indian players, aiming to supply more liquefied natural gas (LNG) to the country, Sang Ratnam, country chair and managing director (India), told Shubhangi Mathur during the recently held India Energy Week in Goa. The world’s third-largest LNG manufacturer is also planning to double the capacity of the Dhamra LNG terminal, in Odisha, and focusing on the ongoing green-energy projects with Adani Green Energy, Ratnam says. Edited excerpts. 

What role do you see TotalEnergies playing in meeting India’s future LNG demand? 

Pricing has historically been the most important factor in discussions on LNG but today security of supply has taken over. As a major portfolio player and the third-largest LNG player globally, TotalEnergies gives comfort to the Indian buyers that it can deliver energy in any circumstances. That is why a lot of people are approaching us. We have invested all over the planet and, unlike smaller players who can, maybe, offer cheaper cargo, you need big players with diversified global portfolios that are able to adjust to geopolitical situations and deliver gas. 

India is at the centre of the future demand wave. We are putting in effort to market our LNG and speaking to buyers and the government to see what we can do to bring more LNG to India. In India, infrastructure today is ready in the form of eight terminals and gas pipelines of 25,000 km, and every corner of the country is licensed for city gas. The government has put all the policies in place. What you need now is to fill the pipes. 

What are the key growth areas and investment plans in India? 

TotalEnergies has made substantial investment in India and we are now in the execution phase. We have invested around $5 billion in India over the past five years in gas and renewables. We developed the Dhamra LNG terminal — of 

5 million tonnes per annum (MTPA) — which is the first LNG regas terminal on the east coast. The terminal connects with almost 35 per cent of the Indian population. We have also invested in Adani Total Gas Ltd (ATGL), which is licensed in 53 geographical areas. The other big activity is marketing our LNG. In the past two years, we signed two big LNG supply and purchase agreements (SPAs). We are talking to all the major LNG buyers in the country — public-sector undertakings and mid-size industries. 

We have invested over $3 billion in renewables, primarily solar and wind. We are a shareholder in Adani Green Energy, one of the largest renewable-energy developers in the world. It is exciting because we are installing projects and capacity at a scale not seen anywhere. We have the Khavda project in Gujarat, Kutch, which alone is a 30 Gw project in a single location. We have operationalised 7 GW in three years. There is also 5 Gw of pump storage hydro in progress. 

How has been the capacity usage of the Dhamra LNG terminal? 

Its capacity usage is around 50 per cent. We are also studying expansion of the terminal. Its 5 MTPA can go up to 10 MTPA. We are focused on engineering and identifying offtakers right now. The East coast has several refineries. We have signed an agreement with Oil India and Numaligarh Refinery. We are starting discussion with them on supplying LNG to Numaligarh. We are in a unique position to supply gas to the Northeast via the Dhamra LNG terminal. 

Do you see yourself entering India’s energy infrastructure, especially the storage facilities in near future? 

We operate an LPG cavern in Visakhapatnam in partnership with Hindustan Petroleum Corporation. India has been talking about LNG and oil storage. We could be interested but it is not something we are focused on. The government is mostly interested in strategic reserves and it is probably more appropriate for national companies to invest. 

Will you be interested in investing in new LNG terminals coming up in India? 

The government is pushing for building LNG terminals. It is a positive signal that they see a lot more LNG coming to the country. We may look into that as that happens. A lot of the terminals are still underutilised. In the short term, I think we are comfortable with focusing on Dhamra LNG. 

Oil India, a state-run company, and TotalEnergies have joined hands on exploration. What can we expect there? 

India has largely produced oil and gas in shallow and onshore fields. The country is now turning its attention to deep-water or ultra-deepwater exploration, which is costly and technically challenging. The government has also opened the so-called “no-go areas” for exploration, signalling its intent to ensure reserves do not remain untapped. We have done exploration in many parts of the world. We have drilled in the deserts of Iraq, honed our expertise in deepwater operations off the West African coast, and built huge platforms in the North Sea in extreme conditions. Working with credible partners is important for India. We are sharing our technologies, knowledge and experience from other parts of the world. 

Why have global players been hesitant to invest in exploration in this country? 

These are expensive and complex projects, requiring detailed data before investors commit. In India, there is a lack of data because several basins were “no-go areas” earlier. We are engaging with our partners to develop this data. We are participating in the government-sponsored “stratigraphic wells’ campaign”. At the same time, India has to compete with countries all over the world. Many countries have a lot of information and data. We have to weigh our options. It is not always a question of whether people want to invest here but also of what other opportunities exist elsewhere.