Adani Total Gas locks in $375m global deal to power gas revolution in India

Adani Total Gas Limited (ATGL) has made headlines by securing the largest global financing in the city gas distribution (CGD) sector. The financing framework is expected to accelerate ATGL’s ambitious plans to expand its network across India, catering to 14% of the population, equivalent to over 200 million people. This financing underscores ATGL’s commitment to further India’s gas-based economy and is a major step in the country’s energy transition.

The initial $375 million financing package includes an immediate $315 million commitment, with international lenders such as BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation on board. According to Parag Parikh, Chief Financial Officer of ATGL, this funding framework lays a foundation for future financing opportunities, crucial for ATGL’s long-term growth. This approach aims to increase access to Piped Natural Gas (PNG) and Compressed Natural Gas (CNG), helping reduce reliance on high-carbon conventional fuels.

Global lenders back Adani’s gas distribution push

This financial package signals confidence in India’s growing role in the global natural gas industry. By expanding its infrastructure into 34 authorised Geographical Areas (GAs) across 13 states, ATGL will contribute to the country’s energy shift from carbon-intensive fuels. The network aims to strengthen the infrastructure for PNG and CNG across India, providing eco-friendly, reliable, and affordable fuel sources for both domestic and industrial sectors.

ATGL’s gas distribution expansion is aligned with the Indian government’s push to increase the share of natural gas in the country’s energy mix from the current 6% to 15% by 2030. This move, experts say, could have a profound environmental impact by slashing carbon emissions and cutting down fuel costs. International lenders’ participation reflects confidence in the growing market for CGD, which is expected to act as a critical transitional fuel in India’s broader energy ambitions.

Expert opinion: Major step towards India’s energy transition

Energy analysts have observed that the size of the financing package is a clear signal of international confidence in India’s gas sector and its role in a broader global shift to greener energy. As Parag Parikh noted, the financing framework would facilitate sustained growth for ATGL, paving the way for long-term value creation and further investment. This could position ATGL as a leader in India’s energy transition.

By enhancing gas distribution and alternative energy solutions such as E-mobility and Biomass, ATGL stands poised to support India’s shift to a low-carbon economy. With increasing global pressure to reduce carbon emissions, India’s push for greener alternatives in energy production could inspire further investment in sustainable infrastructure.

A catalyst for future financing?

The importance of this $375 million financing cannot be overstated. It paves the way for future financial commitments, and ATGL will likely leverage this successful transaction to secure more international funding. As the demand for cleaner fuel increases in India, the company’s role in expanding the CGD network could potentially draw more investors and improve access to eco-friendly energy across the country.

Adani Total Gas Limited’s largest global financing deal marks a pivotal moment for the company and India’s natural gas industry. This development not only bolsters ATGL’s position as a leading player in India’s city gas distribution sector but also supports India’s broader energy transition goals.