Adani Gas Limited (AGL) has acquired three geographical areas (GAs), namely, Ludhiana, Jalandhar and Kutch (East) from Jay Madhok Energy Private Limited, Jay Madhok Holdings Private Limited, lshar Gas Ludhiana Private Limited and lshar Gas Jalandhar Private Limited. The acquisition is expected to benefit more than one million households, over 700,000 compressed natural gas (CNG) vehicles and other industrial and commercial customers.
These GAs have high-volume potential in terms of demand of more than 6.5 million standard cubic meter per day over a period 10 years. These GAs will offer early monetisation opportunity to AGL. The twin cities of Ludhiana and Jalandhar are major industrial and commercial hubs in Punjab and lie in the vicinity of the pipeline connectivity. Similarly, Kutch (East) in Gujarat is also well-connected with pipeline, offering early monetisation opportunity to AGL. There GAs are under the Phase 1 of Bharat Mala Pariyojana by National Highways Authority of India, which would further boost the volume growth.
The acquisition will increase the presence of AGL in 22 GAs as a standalone entity and 19 GAs in a joint venture with Indian Oil Corporation Limited, covering 74 districts in all. The initiative of AGL is in line with the government’s aim to provide piped natural gas and CNG to all. However, the transaction is subject is necessary regulatory and customary approvals.