India’s Adani Total Gas Secures $375 Million Financing for Rapid Network Expansion

Adani Total Gas Ltd (ATGL), a City Gas Distribution (CGD) company, secured $375 million in financing from global lenders as part of a broader financing framework to support its rapid network expansion. 

The agreement allows for future finance depending on its long-term business strategy as part of a larger financial structure. 

With the help of the fund, ATGL will be able to expand its CGD infrastructure across 34 approved Geographical Areas (GAs) in 13 states, speeding up its capital investment program. 

Five large international banks, including BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation, secured the initial $315 million in funding.  

Over 200 million people, or up to 14% of India's population, will be served by this initiative. 

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The expansion will concentrate on increasing the penetration of compressed natural gas (CNG) and piped natural gas (PNG) infrastructure to support the growth of a gas-based economy. 

Mr. Parag Parikh, ATGL's CFO, said, “Participation from the global lenders reinforces the potential of city gas distribution in its role as transition fuel.”

He added, “This financing framework will drive ATGL’s sustained growth and will be a stepping-stone for future financing based on its capital management plan which will create a long-term value for all our stakeholders.” 

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ATGL's initiatives to develop PNG and CNG networks aim to lessen dependency on carbon-intensive fuels and advance cleaner, more sustainable energy sources. 

This program supports the Indian government's objective of raising the proportion of natural gas in the country's energy mix from 6% to 15% by 2030.