Why is Adani betting $3.4 billion on global energy trade chaos?

Benchmarks Nifty22,927.30228.46FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.41 % Invest NowFEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.8 % Invest NowEnter search text:

The Economic Times daily newspaper is available online now. Read Today's Paper Why is Adani betting $3.4 billion on global energy trade chaos?By ET OnlineLast Updated: Oct 29, 2026, 02:33:00 PM ISTSynopsis

Adani Group is reportedly exploring a $3.4 billion acquisition of Dutch energy storage giant VTTI as global oil supply disruptions reshape energy trade. With terminals across 16 countries, VTTI could expand Adani Ports' international footprint, strengthen crude oil storage and logistics capabilities, and unlock opportunities in fuel trading, biofuels, hydrogen infrastructure and global energy supply chains amid geopolitical uncertainty.

Listen to this article in summarized format

Loading...×Soon after the Adani Group reportedly missed the chance to buy a stake in the UK's Associated British Ports (ABP) as the 64% stake was sold to Australian asset management firm IFM Investors, it is said to be eyeing another Europe-based asset.

Adani is exploring a potential acquisition of Dutch energy storage group VTTI as the current global energy supply disruptions make the facilities more valuable for energy trading, Bloomberg has reported based on information from sources.

Also Read: Adani said to weigh deal for €3 billion energy storage firm VTTI

Adani Group is among suitors that have been evaluating Rotterdam-based VTTI for a deal that could value the company at around €3 billion ($3.4 billion). The VTTI discussions remain preliminary, with no certainty that a transaction will materialise, and no party has confirmed this development.

Adani’s reported interest in VTTI points to an ambition that goes beyond owning merely ports but to become a diversified integrated global transport platform.

Live Events

You Might Also Like:

Foreign airlines, Adani Airports deadlocked over Mumbai Airport shift

The proposed acquisition would give the conglomerate a foothold in the infrastructure that keeps global energy markets moving such as storage terminals where crude oil, refined fuels and other products can be held before reaching buyers. As supply disruptions make access to storage and trading hubs more valuable, these facilities offer Adani a way to expand its influence across the energy supply chain.

Also Read: Adani group stocks jump up to 3%, add Rs 23,000 crore to total m-cap

The business behind VTTI’s appeal

VTTI has grown into a global energy infrastructure company with a business that extends beyond storing crude oil and petroleum products. The Rotterdam-headquartered group operates across 16 countries on five continents, with storage capacity of 9.1 million cubic metres, equivalent to roughly 57 million barrels. Its network connects major trading and industrial hubs in Europe, the Middle East, Asia, Africa and the Americas.

The company’s role is more specialised than that of a conventional port operator. Its terminals store, blend and process products before they move onwards by ship, pipeline, rail or road. The portfolio includes crude oil, petrol, diesel, jet fuel, LPG, industrial chemicals and solvents. Several facilities also handle biofuels and other products associated with the energy transition. For customers such as commodity traders, refiners and energy companies, the value lies in having storage close to shipping routes and major consumption markets, with the flexibility to redirect or blend products as commercial conditions change.

The geography is central to the investment case. At Fujairah in the UAE, VTTI reports storage capacity of 1.943 million cubic metres, 66 tanks and 11 jetties. The terminal sits beside a major oil trading and bunkering hub near the Strait of Hormuz, making it relevant to energy flows connecting the Gulf with Asian markets. In Amsterdam, another important part of the network, VTTI reports capacity of 1.1 million cubic metres across 173 tanks. The facility also supports gasoline blending and gasoil trading while expanding its capabilities in biofuel storage.

Europe is also becoming a base for VTTI’s expansion into newer energy infrastructure. In April, the company said its Project Amplifhy Europe was developing ammonia import terminals and cracking facilities in Rotterdam and Antwerp. The aim is to convert imported ammonia into hydrogen for industrial use.

VTTI is also expanding into renewable natural gas and infrastructure for sustainable fuels. Its Amsterdam terminal is the site of a planned renewable-feedstock pretreatment facility with partner Connex, while its Antwerp operations include development of the TyreLoop project to convert end-of-life tyres into secondary raw materials. These initiatives broaden the business beyond conventional fuel storage, although their eventual contribution will depend on project execution and commercial demand.

For Adani, the attraction would be access to an established international network that would take years to assemble organically. Its ports business provides the physical gateways for cargo, while VTTI will add specialised storage and handling infrastructure within global energy markets. That could create opportunities to serve customers across more stages of the supply chain.

VTTI is not simply a collection of oil tanks but a network of strategically located energy terminals, with an expanding portfolio of infrastructure for emerging fuels. This combination offers Adani a potential route into global energy logistics while giving it exposure to the infrastructure required as fuel markets evolve.

VTTI's footprint is particularly relevant when shipping routes are disrupted or geopolitical tensions force buyers to seek alternative supplies. Storage can help traders hold products until prices improve, redirect cargoes to markets offering better returns or maintain deliveries when fresh supplies are delayed.

A natural extension of Adani’s ports empire

The strategic fit becomes clearer when viewed alongside Adani Ports and Special Economic Zone (APSEZ), the group’s principal ports and logistics business. APSEZ operates 15 ports and terminals in India, with four international ports in Israel, Tanzania, Sri Lanka and Australia. Its domestic cargo-handling capacity stands at 653 million metric tonnes, according to the company’s latest operational disclosures.

Also Read: Adani Ports' global biz sprints, but home is still where the money is

VTTI would add a different layer to that network. Ports handle cargo moving through a gateway. Storage terminals allow companies to hold, blend and process products before dispatching them by ship, pipeline, rail or road. Combining these capabilities could help Adani offer energy companies a larger package of services, from unloading cargo to storing it and moving it towards end-users.

There is also a geographic rationale. VTTI’s presence in Europe, the Middle East, Asia, Africa and the Americas would give Adani access to established energy hubs beyond its existing port network. That fits APSEZ’s stated ambition to build an integrated global transport platform.

Why storage becomes valuable during supply shocks

Energy storage is often a less visible business than oil production or refining, but it can become strategically important when markets are volatile. A disruption to shipping or supply can change where crude and refined products are available, while differences in regional prices create opportunities for traders to redirect cargoes.

Terminals provide the flexibility needed to exploit those differences. Their owners can earn fees for storage and handling without necessarily taking direct exposure to the price of the commodity itself. The precise risk profile depends on contract structures, utilisation rates and the services offered.

VTTI says its facilities are designed to connect storage with marine, road, rail and pipeline transport. Its Fujairah terminal, for example, has capacity of about 1.94 million cubic metres and 11 jetties. The facility handles products ranging from crude oil and diesel to LPG and chemicals. Its location alongside a major bunkering hub adds to its relevance for regional energy flows.

For Adani, the appeal is therefore not simply that geopolitical instability may push up demand for storage. A global terminal network could also take its earnings beyond cargo throughput at ports, though the extent of any benefit would depend on VTTI’s financial performance and the price paid.

VTTI offers a bridge to the next phase of energy

VTTI's business is not limited to conventional oil storage. Its current portfolio includes infrastructure for biofuels, sustainable aviation fuel and LNG, alongside projects involving renewable natural gas and hydrogen. The company has set a target of generating 50% of its earnings from new and transitional energies by 2028, according to its website.

That transition could make VTTI relevant to Adani’s longer-term energy plans. The group has committed substantial capital to renewable power, electricity transmission and other utilities, while its wider infrastructure portfolio includes conventional energy businesses. Storage infrastructure capable of handling emerging fuels would provide an entry point into new energy supply chains without requiring Adani to build an entirely new international network.

The $3.4 billion question

As per the Bloomberg report, VTTI’s potential valuation could be around €3 billion, or $3.4 billion. That is a substantial commitment even for a conglomerate with ambitions across multiple infrastructure sectors. The actual cost to Adani would depend on the stake acquired, the company's debt and the terms negotiated with existing shareholders.

VTTI is currently owned by IFM Investors and Vitol, each with approximately 45%, while Abu Dhabi National Oil Company (Adnoc) holds the remaining 10%. Adnoc is considering a complete exit, while the other shareholders may also sell down their positions. The presence of multiple owners could allow Adani to negotiate a controlling stake, although no final arrangement has been reported.

Last year, Adani Group planned to raise more than 12.5billioninequityoverfiveyearstosupportaRs5lakhcrorecapitalexpenditureprogramme.ThegroupsubsequentlyreportedrecordcapitalexpenditureofRs1.53lakhcroreinFY2025-26. AdaniEnterprisesLtd.inJulyraised150billionrupees(1.6 billion) from institutional investors to help fund capital expenditures and possible debt repayment.

These numbers show the scale of its investment ambitions, but they do not establish that the group has earmarked funds for VTTI. A deal of this size would require careful allocation of capital, particularly if financed partly through borrowing. The key financial test would be whether VTTI’s recurring cash flows justify the acquisition price and the cost of financing it.

The Associated British Ports setback

The reported VTTI interest follows Adani’s unsuccessful pursuit of Associated British Ports (ABP), which operates 19 ports and handles about a quarter of UK seaborne trade. Bloomberg reported on October 21 that IFM Investors had secured an agreement to acquire the combined stakes of Canada Pension Plan Investment Board and OMERS, valuing ABP at around £10 billion. The transaction remains subject to approvals.

The two opportunities reveal Adani's consistent interest in overseas infrastructure with strategic importance to trade and energy markets. But they are not interchangeable. ABP offered access to a major network of British ports, while VTTI specialises in energy storage and associated handling infrastructure.

VTTI is also a much smaller proposed transaction, potentially giving Adani an international foothold in a specialised business without committing the big amount associated with ABP. Whether that makes it more attractive will depend on its profitability, debt and growth prospects, rather than the headline valuation alone.

If a transaction proceeds, the acquisition would represent Adani's shift from expanding port ownership alone towards controlling more of the infrastructure that supports global energy trade. That's the central strategic case for VTTI, with execution and valuation likely to determine whether the opportunity translates into durable returns.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onAdani Group acquisitionAdani VTTI energy storageglobal energy tradeAdani PortsAdani Grouprenewable energy projectsadani newsadani ports businessadani acquisition newsadani

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

...moreless
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onAdani Group acquisitionAdani VTTI energy storageglobal energy tradeAdani PortsAdani Grouprenewable energy projectsadani newsadani ports businessadani acquisition newsadani

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Big Price Drop! Flat 40% Off

Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail OfferAvail OfferClaim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '

' + h3 + '

' + h4 + '

' + listing + '

'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with
in-depth insights that matter

• Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

  What Adani’s US indictment means for India Inc’s overseas fundraising

• Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

  Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

• Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

  The problem with lab grown diamonds

• Why a falling rupee is a better option for the economy

  A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Alpha Trade

Get daily trade ideas from SEBI-registered research analysts.

Investment Ideas

Grow your wealth with stock ideas & sectoral trends.

Stock Reports Plus

All-in-one stock research with Stock Score, peer comparison & key signals.

BigBull Portfolio

Get to know where the market bulls are investing to identify the right stocks.

Stock Analyzer

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Market Mood

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Stock Talk Live at 9 AM Daily

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Manage your money efficiently with this weekly money management guide.

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

5Enjoy Complimentary Subscriptions From Top Brands

Stream new documentaries from all across the world every day.

Stories you might be interested in