ADNOC Gas Expands Global Reach with 10-Year LNG Supply Deal to India

Prime Highlights

ADNOC Gas signs 10-year LNG sale and purchase agreement with Hindustan Petroleum Corporation Limited (HPCL).
Deal strengthens UAE-India energy relationship and hastens UAE cleaner fuel plans.

Key Fact

ADNOC Gas will export 500,000 metric tonnes of liquefied natural gas per year to India.
It will be supplied from its 6 million tonnes per annum capacity Das Island terminal.

Key Background

ADNOC Gas has also strengthened its global footmark with a strategic expansion by subscribing a 10- time deal to buy thawed natural gas( LNG) from Hindustan Petroleum Corporation Limited( HPCL). This will supply 500,000 metric tonnes of LNG annually to India. This not only augments the import capacity of ADNOC Gas but also assists in fulfilling India’s growing need for clean energy.

The contracted LNG would be sourced from ADNOC’s own Das Island liquefaction plant, capable of producing 6 million tonnes of LNG per year. The project is part of UAE international LNG strategy. The terms of the deal cannot be ascertained from public information, but the period for which the long-term deal is being awarded is an indicator of the level of compatibility and trust between the two nations in the hydrocarbons market.

India, the energy growth world champion, is going full speed ahead towards a cleaner and diversified energy basket. LNG is the fulcrum around which this is taking place as the cleaner alternative to coal and crude. HPCL’s partnership with ADNOC Gas puts India eyeball-to-eyeball with a safe long-term natural gas supply and places it with the potential to cater to industry requirements as well as green ambitions.

The deal is also another milestone towards deeper economic and energy collaboration between the UAE and India. ADNOC Gas also establishes itself as a stable provider of energy for the Asia-Pacific region on the basis of the strength of the stability of its foundation and rising production capacity. The deal is a testament to the overall global shift toward cleaner energy, where LNG long-term contracts are the foundation of energy security and decarbonization targets.