In a significant development for global energy markets, Adnoc Gas has finalized a monumental ten-year liquefied natural gas (LNG) supply agreement with India’s Hindustan Petroleum Corporation Limited (HPCL), valued between $2.5 to $3 billion. The landmark deal was formalized during President Sheikh Mohamed bin Zayed Al Nahyan’s diplomatic visit to India, where he conferred with Prime Minister Narendra Modi, highlighting the growing strategic energy partnership between the two nations.
The contract execution ceremony featured Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director, exchanging documents with HPCL Chairman Vikas Kaushal. This agreement transforms a previously signed Heads of Agreement into a comprehensive long-term supply arrangement that will see Adnoc Gas export 0.5 million tonnes per annum of LNG to India through its Das Island liquefaction facility, one of the world’s longest-operating LNG plants with a production capacity of 6 mtpa.
Fatema Al Nuaimi, Chief Executive Officer of Adnoc Gas, emphasized the agreement’s significance: “This long-term supply arrangement reflects the robust energy partnership between our nations and demonstrates our commitment to meeting global LNG demand while supporting India’s objective to increase natural gas to 15% of its energy portfolio by 2030.”
The strategic pact elevates India to become the UAE’s largest LNG customer, with Adnoc Gas now contracted to supply 3.2 million tonnes per annum to Indian energy companies by 2029. This represents approximately 20% of the 15.6 MTPA that Adnoc Gas will operate. The agreement reinforces the company’s expanding footprint in Asia’s rapidly growing energy markets, bringing its total contract value to over $20 billion.
This arrangement represents Adnoc Gas’s continued market diversification strategy, marking the latest in a series of long-term LNG contracts secured over the past three years, ranging from 0.4 to 1.2 mtpa with durations extending to 14 years. The Das Island facility, with its proven track record of delivering more than 3,500 LNG cargoes globally, provides the operational reliability crucial for meeting India’s growing energy demands.