ADNOC Gas has signed a long-term liquefied natural gas (LNG) supply agreement worth between $2.5 billion and $3 billion with India’s Hindustan Petroleum Corporation Limited (HPCL).
The 10-year sales and purchase agreement covers the supply of 0.5 million tonnes per annum of LNG and converts a previously signed heads of agreement into a binding contract.
India is now the UAE’s largest LNG customer, and by 2029 around 20% of LNG operated by ADNOC Gas is expected to be supplied to Indian buyers. ADNOC Gas said it has signed LNG contracts worth more than $20 billion with Indian companies over the past 24 months.
“We are pleased to sign this long-term LNG supply agreement with Hindustan Petroleum Corporation which reflects the strong and growing energy partnership between the UAE and India. This agreement underscores ADNOC Gas’ commitment to delivering reliable LNG to meet global demand, while supporting India’s ambition to increase natural gas to 15% of its energy mix by 2030,” said Fatema Al Nuaimi, chief executive officer of ADNOC Gas.
By 2029, ADNOC Gas will operate 15.6 million tonnes per annum of LNG capacity, of which 3.2 mtpa is contracted to Indian energy companies, including HPCL. Supplies under the agreement will come from ADNOC Gas’ Das Island liquefaction facility, which has a production capacity of up to 6 mtpa.
Das Island ranks among the world’s longest-operating LNG plants and has delivered more than 3,500 LNG cargoes globally since operations began, according to ADNOC Gas.