The natural gas distribution company will increase its number of licences to 41, which cover 74 districts in the country
Adani Gas (AGL) has signed an agreement to acquire city gas licences for Ludhiana, Jalandhar, and Kutch (East) in India from Jay Madhok Energy for an undisclosed price.
The India-based natural gas distribution company said that the acquisition grows its footprint from 19 to 22 geographical areas (GAs), while adding more than one million households.
In terms of demand, the three areas have high volumes potential of more than 6.5 million standard cubic feet per day (MMSCMD) of piped natural gas (PNG) and compressed natural gas (CNG) over a period 10 years, said Adani Gas.
The company said that the newly added geographical areas in its portfolio come under phase 1 of the National Highways Authority of India’s Bharat Mala Pariyojana project. Owing to this, the company expects that there will be further development in the areas which will lead to increased demand for gas.
Ludhiana and Jalandhar are twin cities in the northern state of Punjab, while Kutch (East) is located in the north-western state of Gujarat.
According to Adani Gas, the availability of pipeline connectivity in the vicinity of all the three areas will provide it opportunity for early monetisation.
Adani Gas CEO Suresh Manglani said: “We will aim to fast track the infrastructure developments across all these GAs. These 3 GAs shall add significant high volumes and infrastructure developments and will take AGL to a high growth trajectory.
“With the strong parentage of AGL, the residents of Ludhiana, Jalandhar and Kutch (East) shall also be beneficiary of best in class CGD networks, operations, maintenance, digital and customer centric approach with continued focus on Health & Safety, community development and better returns to the stakeholders.”
The natural gas distribution company has an additional 19 gas licences with its joint venture partner Indian Oil (IOCL). Its 41 licences cover 74 districts across India.
The acquisition is subject to relevant regulatory and other customary approvals.