Adani Total Gas Planning Rs 18,000 Crore Investment On CGD Infrastructure, Says CEO
The company has CGD licence for 52 geographical areas across 124 districts, after the 11th round of GA allocations by the PNGRB.
Adani Total Gas Ltd. plans to invest Rs 16,000-Rs 18,000 crore to set up city gas distribution infrastructure across geographical areas over the next seven to eight years, according to Chief Executive Officer Suresh P Mangalani.
The company has CGD licence for 52 geographical areas across 124 districts, after the 11th round of GA allocations by the Petroleum and Natural Gas Regulatory Board. The 12th round is under bidding stage and allocations are expected in February-March.
"We intensified capital expenditure in setting up infrastructure for geographical areas awarded in the 9th and 10th round. Now, we plan to enhance the investments for GAs awarded in the 11th round," Mangalani told NDTV Profit, in an exclusive interview.
The company expects the government's nationwide drive for PNG to create awareness among masses and provide momentum to increase volume of natural gas in the energy mix, he said.
"It will be good for the CGD companies and consumers both."
The CEO also highlighted the policy support by the government.
The government has put a ceiling of $6.5/mmBtu on administered price mechanism gas and there is an upper ceiling on high-pressure-high-temperature gases auctioned by domestic oil explorers, which aids CGD companies in keeping a check on their costs, Mangalani said.
"It is a great help for us since we receive 50-60% of our APM gas allocation by the government," he said.
The regasified LNG prices are moving towards "moderation of the price curve" and excess supply is expected in the later part of FY26, according to him.
"This will be good for us as we are setting up lots of LNG terminals and also good news for CGD companies and consumers."
Disclaimer: NDTV Profit is a subsidiary of AMG Media Networks Limited, an Adani Group Company.
