ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company, has recently entered into a significant agreement with India-based Hindustan Petroleum Corporation (HPCL) to supply liquefied natural gas (LNG) for a period of ten years. This deal, valued between $2.5bn and $3bn, marks a substantial milestone in the growing energy partnership between the United Arab Emirates (UAE) and India.
The agreement, which was formalized during a visit to India by President Sheikh Mohamed bin Zayed Al Nahyan, signifies the deepening ties between the two nations. Under the terms of the contract, ADNOC Gas will export 500,000 tonnes per annum (tpa) of LNG from its Das Island liquefaction facility, renowned for its extensive operational history and annual production capacity of up to six million tonnes per annum (mtpa).
By 2029, ADNOC Gas is expected to oversee 15.6mtpa of LNG, with 3.2mtpa specifically allocated for Indian energy companies like HPCL. This long-term supply agreement reflects ADNOC Gas’ commitment to meeting global LNG demand while supporting India’s goal of increasing natural gas to 15% of its energy mix by 2030.
CEO of ADNOC Gas, Fatema Al Nuaimi, expressed delight in signing this agreement with HPCL, highlighting the strong energy partnership between the UAE and India. This deal aligns with ADNOC Gas’ strategic objective of expanding its market presence in Asia and diversifying its customer base, solidifying its reputation as a reliable supplier in the region’s rapidly growing energy markets.
Over the past few years, ADNOC Gas has secured multiple long-term LNG contracts with various Asian markets, ranging in volumes from 400,000tpa to 1.2mtpa and durations of up to 14 years. These partnerships have collectively amounted to more than $20bn (Dh73.45bn) in total contract value, emphasizing ADNOC Gas’ significant presence in the global energy landscape.
In conclusion, the agreement between ADNOC Gas and HPCL signifies a major milestone in the energy sector, showcasing the deepening ties between the UAE and India. This collaboration not only strengthens the relationship between the two nations but also underscores ADNOC Gas’ role as a leading LNG supplier in the region. The future looks bright for both companies as they work together to meet the rising demand for natural gas in the global market.
This article is a rewrite based on the original content published by Offshore Technology.
