French energy major – Total SA had agreed to acquire a 37.4 percent stake in the city gas distributor – Adani Gas Ltd. for around Rs.5,700 crore, thus marking the former’s biggest bet on India’s clean energy push. “Adani Gas and Total SA will soon seek government nod to open retail fuel stations in India,” says Suresh Manglani, CEO, Adani Gas.

“Definitely we will take full benefit of the expertise and strength of Total. The joint venture, Total Adani Fuels Marketing Pvt Ltd, will shortly apply for a license under the new liberal fuel retailing rules,” adds Manglani. The proposed acquisition also marked the largest foreign direct investment in India’s city gas distribution industry, with the deal giving Total joint control of Adani Gas, along with the Adani group.

Despite a slowing economy, India remains a lucrative market for global oil companies as it is the world's third largest oil consumer and importer. In October, the government had eased fuel retailing norms, allowing non-oil companies to setup petrol pumps to boost competition.

The joint venture, Total Adani Fuels Marketing Pvt Ltd, will shortly apply for a license under the new liberal fuel retailing rules

This June, the government also allowed entities to setup liquefied natural gas (LNG) stations anywhere in the country as India aims to raise share of gas in its energy mix to 15 percent by 2030 from the current 6.2 percent. These measures have made India an attractive destination for oil majors.

Last month, British oil major BP and India’s Reliance Industries (RIL) formalized their joint venture Reliance BP Mobility Ltd. RBML, where BP holds 49 percent stake and RIL holds the rest, plans to expand fuel retail outlets to over 5,500 from the present over 1,400. It also plans to build full-stack electrolyzer and fuel cell solutions in India which will be used to run hydrogen fuel cell vehicles. “We will replace transportation fuels with clean electricity and hydrogen,” RIL Chairman Mukesh Ambani had said at the company’s annual general meeting on 15 July.

Adani Gas, which has been a major player in the country’s city gas distribution segment, also plans to sell liquefied natural gas (LNG) for transportation. The company reported a 42 percent year-on-year decline in its net profit for the quarter ended June to Rs.46 crore. Revenue from operations dropped 57 percent to Rs.207 crore from Rs.479 crore in the corresponding period last fiscal. Ebitda (earnings before interest, tax, depreciation and amortization) was down 41 percent at Rs.86 crore.