Adani Total Gas is currently planning on expanding its business operations by venturing into the LNG for transport and mining segment. The company aims to build an enhanced network of 50 LNG retail networks. It has already commissioned its first LNG station in Tamil Nadu. It also has elaborate plans to invest INR 200 to 250 crores over the next three to five years in its LNG business. This will give the company’s business operations an extraordinary boost. It will also be able to take its business to new heights. The Adani coal mines will also be able to operate smoothly.
Adani’s Plans To Venture Into The LNG For Transport And Mining Segment:
Adani Total Gas, which happens to be a joint venture between Adani Gas and the French energy giant, TotalEnergies, has decided to harness liquefied natural gas for the transport and mining segments. LNG for transport caters to the needs of the buses and long-haul trucks segment. LNG for mining will help the company get into the mining spots in India. The operations of the Adani coal mines will improve. Currently, diesel is the fuel that is being used to run mining trucks and earth movement equipment. However, by replacing diesel with LNG, the Adani Group will be able to ensure that the mining vehicles can operate in a more environmentally friendly manner. The amount of pollution generated will also be reduced to a significant extent.
What Does The ATGL CEO Have To Say About This New Business Plan?
Suresh Manglani, the executive director and chief executive officer of ATGL, has recently mentioned that the company is currently venturing into another adjacent business arena called the LNG for transport and mining. This can turn out to be an extremely big opportunity for Adani Group’s business. The company has completed the commissioning of their first LNG station in Tirupur, Tamil Nadu. Many other LNG stations are at their various stages of construction and commissioning.
Once these LNG stations are built successfully, the Adani Group will be able to hold enhanced control over the LNG sector. The long haul vehicles can also meet their fuel demands from LNG. Adani Total Gas also has elaborate plans to build a network of 50 LNG retail outlets along major airports, highways, mines, and industrial hubs. This will be done within the next three to five years. An investment of INR 200 to 250 crore will be made on the project.
Why Venture Into The LNG Segment?
As per officials of oil companies, setting up an LNG station would cost around INR 8 to 12 crore while building a fuel retail outlet would cost only around INR 1.5 crore. The companies are currently exploring opportunities to expand CNG dispensing stations to include LNG as well. The improved road Infrastructure and liquefied natural gas pricing have made the long-haul LNG tracking segment an attractive opportunity for investment for the energy companies.
Earlier this year, the state-owned gas transporter and marketer, GAIL India also committed an investment of INR 650 crore to set up LNG filling stations along the Golden Quadrilateral, mining hubs, and other major highways. The company has elaborate plans to capture over 50% market share by 2030. Various other public and private energy companies are also planning on entering the LNG long-haul trucking segment. With Adani Group’s venture into the segment, it will definitely experience an extraordinary boost. The revenue generation from the Adani coal mines will also increase.
Adani Total Gas: An Overview
Adani Total Gas is a wholly-owned subsidiary of the diversified Adani Group. The company is currently involved in developing city gas distribution networks to supply PNG to industrial, commercial, and domestic sectors. It also plans to supply LNG to the transport sector. As per Adani Total Gas, natural gas is a convenient, reliable, and environmentally friendly fuel that allows consumers to enjoy a high level of convenience, safety, and economic effectiveness. The company has already built gas distribution networks in various states in India. It has plans to further diversify its network by increasing its presence in the LNG sector.
Conclusion:
By venturing into the LNG sector, the Adani Group will be able to take its gas business to new heights. The company will also be able to generate enhanced revenue from its business and win back the trust of the investors. The controversies related to the Adani coal mines will also gradually subside.
