Adani Total Gas Secures ₹3,131 Crore from Global Banks to Boost City Gas Distribution and Drive Energy Transition

Adani Total Gas Ltd (ATGL), a joint venture between Adani Group and French energy company Total Energies, has secured ₹3,131 crore ($375 million) from five international banks: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation. The company made this announcement on Friday.

This funding will help ATGL speed up its capital spending, allowing the company to quickly expand its city gas distribution network across 34 authorized Geographical Areas (GAs) in 13 Indian states. This project is expected to serve up to 14% of India’s population, covering over 200 million people, according to a regulatory filing by the company.

The $375 million deal, which includes an initial commitment of $315 million with a potential for further funding, was described as a significant milestone in ATGL’s growth journey. Parag Parikh, the CFO of ATGL, said that this financing structure will support the company’s future growth and is part of a larger capital management plan aimed at delivering long-term value for all stakeholders.

The expansion will increase the reach of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, promoting a shift toward a gas-based economy in India. ATGL stated that its goal is to help the country transition to cleaner energy by encouraging the use of PNG and CNG instead of traditional fuels that produce more carbon emissions.

These fuels are not only more environmentally friendly but also offer a cheaper, reliable, and convenient energy option. This effort aligns with the Indian government’s plan to raise the share of natural gas in the country’s energy mix from 6% to 15% by 2030. ATGL’s stock closed at ₹788.60 on Friday, up 1.60% on the BSE.