Adani Gas has signed a definitive agreement for acquisition of city gas distribution (CGD) network in three geographical areas (GA) from a consortium led by Jay Madhok Energy.
The three GAs include Ludhiana and Jalandhar in Punjab; and Kutch (East) in Gujarat.The consortium includes-Jay Madhok Energy, Jay Madhok Holdings, lshar Gas Ludhiana and lshar Gas Jalandhar.
All three GAs have high volumes potential in terms of demand of over 6.5 mmscmd over a period of 10 years. These GAs are under Phase-1 of Bharatmala Pariyojana by the National Highways Authority of India (NHAI) which will further boost the development and volume growth.
AGL has strong presence in Gujarat. Kutch (East) is well connected with a pipeline and R-LNG terminal infrastructures.
Given the availability of the pipeline connectivity in the surroundings, all the three GAs will offer early monetisation opportunity to AGL.
With the addition of these three GAs, AGL will now have a presence in 22 GAs as a stand-alone entity and additional 19 gas with JV partner with the Indian Oil Corporation (IOCL) aggregating its tally to 41 gas (74 districts).
The transaction is subject to necessary regulatory and other customary approvals.