The world’s second-largest LNG player has expanded its partnership with the largest energy and ports infrastructure conglomerate in India
Total has formed a partnership with Adani Group and expects its net outlay in this deal to be US$600M. Together they intend to help the Indian Government increase natural gas use in India through higher LNG imports.
Currently, around 7% of energy consumption in the nation is derived from gas. India has set the ambitious target of increasing the share of gas in its energy mix to 15% by 2030.
This requires higher LNG imports in multiple terminals on both east and west coasts of India.
The 50/50 partnership between Total and Adani includes several assets across the gas value chain including two import and regasification LNG terminals – Dhamra in east India and Mundra in the west. Mundra was completed in 2018 but has not received its commissioning cargo, which is now expected in December 2019.
As part of the agreement, Total will supply LNG to the partnership from its growing portfolio of production that will eventually include east Africa.
In the run-up to signing this partnership agreement, Adani ordered a fleet of new escort and ship manoeuvring tugs for port and terminal operations in India.
Adani booked seven powerful 495-gt tugs with Kanagawa Zosen shipyard in Japan. These 34.5-m tugs are scheduled for delivery between Q3 2020 and Q4 2021.
In reaction to the partnership deal, Total chairman and chief executive Patrick Pouyanné said the natural gas market in India “will have strong growth and is an attractive outlet for LNG”.
“Energy needs in India are immense and the Indian energy mix is key to the climate change challenge,” said Mr Pouyanné. “Firmly investing to develop the use of natural gas in India is in line with our ambition to become a responsible energy major.”
Indian gas growth will open new LNG carrier trade and more opportunities for Total.
“This partnership with Adani is a cornerstone to our development strategy in this country,” said Mr Pouyanné.
Adani will manage the gas distribution network and logistics of importing more LNG. Its newbuild tugs on order in Japan will be deployed for escorting and manoeuvring ships transporting Total LNG into India.
They will each have a pair of Niigata 6L28AHX diesel engines, each able to develop 2,992 kW or power at 2,200 rpm.
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