Paris, October 14, 2019 – As part of its strategy to develop new gas markets, Total, the world's second-largest LNG player, expands its partnership with the Adani Group; the largest energy and infrastructure conglomerate in India, to contribute to the development of the Indian natural gas market.
The Indian natural gas market represents a substantial growth perspective. It is currently only 7% of the energy consumption but has grown over the last 3 years by more than 5% per annum, supported by an active policy of the Indian Government that aims to diversify its energy mix and develop domestic use of gas in cities and as fuel for vehicles. India has set the ambitious target of increasing the share of natural gas in its energy mix to 15% by 2030.
The partnership between Adani (50%) and Total (50%) includes several assets across the gas value chain notably two imports and regasification LNG terminals: Dhamra in East India and potentially Mundra in the West, as well as Adani Gas Limited, one of the 4 main distributors of city gas in India of which Adani holds 74.8% and of which Total will acquire 37.4%.
Adani Gas Limited aims to expand its distribution of gas in the next 10 years through its 38 concessions covering 7.5% of the Indian population and market natural gas to industrial, commercial and domestic customers, targeting 6 million homes as well as through 1,500 retail outlets of natural gas for vehicles.
As part of this partnership, Total will bring its LNG and retail expertise and will supply LNG to Adani Gas Limited. Total and Adani will also establish a joint venture to market LNG in India and Bangladesh.
Energy needs in India are immense and the Indian energy mix is key to the climate change challenge. Firmly investing to develop the use of natural gas in India is in line with Total’s ambition to become the responsible energy major. The natural gas market in India will have a strong growth and is an attractive outlet for the world's second-largest LNG player that Total has become. Adani will bring its knowledge of the local market and its expertise in the infrastructure and energy sectors. This partnership with Adani is cornerstone to our development strategy in this country.”, said Patrick Pouyanné, Chairman and CEO of Total.
To reach a 37.4% shareholding in Adani Gas Limited in accordance with Indian stock market regulations and subject to regulatory approvals, Total will initially launch a tender offer to public shareholders to acquire up to 25.2% of equity shares before buying the remaining shares from Adani.
Taking into account the divestiture of the Group’s interest in Hazira terminal early 2019, the establishment of this partnership on gas in India represents a net acquisition cost for Total of approximately $600 million over 2019-2020.
Deutsche Post DHL Group and Total reinforce their worldwide collaboration on energy solutions and innovative logistics.
Signing of a Strategic Cooperation Agreement to strengthen commitment to work together for sustainable mobility and low-carbon energies, logistics and transport services
Bonn / Paris, October 14, 2019 - Deutsche Post DHL Group (DPDHL Group) and Total have signed a Strategic Cooperation Agreement to strengthen their partnership and contribute to the implementation of their global business ambitions.
Thanks to their complementary geographic presence, the two groups will be able to benefit from new commercial cross-business opportunities, as a customer and a supplier respectively. This B2B partnership displays a common desire of the two companies to work even more closely together on technological and digital challenges and climate issues. Both companies will explore and develop concrete projects alongside their daily business operations and core expertise, including multi-energy offers, sustainable mobility, new solutions for fleet management as well as contract logistics, global freight forwarding, added value supply chain solutions, road freight and express services.
Tim Scharwath, Member of the Board of Management of Deutsche Post DHL Group, comments: “Our ambitious target is to reduce all logistics-related emissions to zero by the year 2050. Alternative drives and fuels as well as clean energy solutions are important cornerstones to achieve this goal. In cooperation with Total, and thanks to their profound expertise in the energy sector, we will be leveraging further innovative solutions to reduce our CO2 emissions and energy consumption. At the same time, we will intensify our partnership to implement best-in-class logistics solutions throughout Total’s various value chains.”
Built on a long history of commercial relationships in more than 100 countries around the world this B2B agreement between the two groups will also leverage their respective global organizations to implement operational excellence, support sustainable business growth, and shape the future through innovation.
"This strategic partnership marks a new stage of the collaboration between Total and DPDHL Group, enabling the development of new businesses, particularly associated with low carbon energies.” adds Momar Nguer, President for Total Marketing & Services. “Total, thanks to its worldwide geographical footprint and wide range of products and services, including EV mobility and fleet management solutions, is ideally positioned to support DPDHL Group in achieving its GoGreen targets”.
About Deutsche Post DHL Group
Deutsche Post DHL Group is the world’s leading mail and logistics company. The Group connects people and markets and is an enabler of global trade. It aspires to be the first choice for customers, employees and investors worldwide. The Group contributes to the world through responsible business practices, corporate citizenship and environmental activities. By the year 2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.
Deutsche Post DHL Group is home to two strong brands: Deutsche Post is Europe’s leading postal service provider. DHL offers a comprehensive range of international express, freight transport, and supply chain management services, as well as e-commerce logistics solutions. Deutsche Post DHL Group employs approximately 550,000 people in over 220 countries and territories worldwide. The Group generated revenues of more than 61 billion Euros in 2018.
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