RIYADH: ADNOC Gas has strengthened its position in Asia’s energy market through a new 10-year liquefied natural gas (LNG) supply agreement with India’s Hindustan Petroleum Corporation Limited (HPCL). The deal will see the Abu Dhabi-based energy provider deliver 500,000 metric tonnes of LNG annually to India, sourced from its Das Island production facility.
Strategic Energy Partnership
The agreement marks ADNOC Gas’ third major LNG supply contract with Indian energy companies within a year, following earlier deals with Indian Oil Corporation and GAIL India. These partnerships align with India’s goal to increase natural gas’ share in its energy mix to 15% by 2030.
Fatema Al-Nuaimi, CEO of ADNOC Gas, emphasized the growing energy collaboration between the UAE and India:
“This agreement reinforces ADNOC Gas’ commitment to meeting global LNG demand while supporting India’s energy security and sustainability objectives. Our long-standing partnerships with Indian energy leaders demonstrate the trust in our reliable supply capabilities.”
Expanding LNG Production
ADNOC Gas’ Das Island facility, operational for decades, has a production capacity of 6 million metric tonnes per year and has shipped over 3,500 LNG cargoes worldwide. The company is ramping up investments, with plans to spend more than $13 billion by 2029 to boost LNG output domestically and internationally.
Recent milestones include:
✔ February 2024: 14-year deal with Indian Oil for up to 1.2 million tonnes/year (valued at $7-9 billion).
✔ September 2024: 15-year supply agreement with Indian Oil for 1 million tonnes/year.
✔ January 2024: 10-year contract with GAIL India.
Driving India’s Clean Energy Shift
As India seeks to reduce carbon emissions, LNG serves as a crucial transitional fuel. ADNOC Gas’ expanding role in India’s energy market supports the country’s economic growth while advancing sustainable energy adoption.
Looking Ahead:
With rising Asian LNG demand, ADNOC Gas is well-positioned to capitalize on long-term supply agreements, reinforcing the UAE’s leadership in global energy markets.
Why This Matters:
- Strengthens UAE-India economic ties.
- Supports global LNG market growth.
- Aligns with India’s net-zero goals.
For more energy sector updates, follow Business Dunes.
