Adani Total Gas Ltd (ATGL) announced on Friday that it has secured $375 million, marking the largest global financing in the city gas distribution (CGD) business. This funding will enable the company to serve over 200 million people, covering 14 percent of India’s population. The financing comes from international lenders and includes an initial commitment of $315 million with an accordion feature to enhance future commitments.
Five international lenders participated in this financing: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation. ATGL CFO Parag Parikh noted that this participation highlights the potential of city gas distribution as a transition fuel. He stated that the financing framework will support ATGL’s sustained growth and create long-term value for stakeholders.
The funds will accelerate ATGL’s capital expenditure program, allowing rapid expansion of its CGD network across 34 authorized Geographical Areas (GAs) in 13 states. This expansion aims to enhance the Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, contributing to a gas-based economy. ATGL also stated that PNG and CNG offer convenient, cost-effective, and eco-friendly fuel options. The initiative aligns with the government’s goal to increase the share of natural gas in the energy mix from 6 percent to 15 percent by 2030.
With authorization in 34 GAs, ATGL plays a vital role in enhancing natural gas’s presence in India’s energy landscape. Of the 53 GAs, 34 are owned by ATGL, while 19 are managed by Indian Oil-Adani Gas Private Ltd (IOAGPL), a joint venture between Adani Total Gas Ltd and Indian Oil Corporation Ltd.
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