Abu Dhabi National Oil Company Gas (ADNOC Gas) and its subsidiaries have signed a 10-year liquefied natural gas sales and purchase agreement with Hindustan Petroleum Corporation Limited, valued between $2.5 billion and $3 billion, the companies said on Monday.
The agreement was announced during a visit to India by UAE President Sheikh Mohamed bin Zayed Al Nahyan, who held talks with Prime Minister Narendra Modi. The contract was exchanged by Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and managing director and group chief executive of ADNOC, and Vikas Kaushal, chairman and managing director of HPCL.
Under the deal, ADNOC Gas will supply 0.5 million tonnes per annum of LNG to HPCL. The supply will be sourced from ADNOC Gas’ Das Island liquefaction facility, which has a production capacity of up to 6 mtpa.
Fatema Al Nuaimi, chief executive officer of ADNOC Gas, said, “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.”
The agreement converts previously signed heads of agreement into a binding long-term contract. ADNOC Gas said the deal supports India’s plan to raise the share of natural gas to 15 percent of its energy mix by 2030.
By 2029, ADNOC Gas is expected to operate 15.6 mtpa of LNG capacity, with 3.2 mtpa contracted to Indian energy companies. The company said the latest agreement brings the total value of contracts it supports and operates to more than $20 billion, reinforcing India’s position as a key market in its LNG strategy.
The agreement converts a previously signed heads of agreement into a binding long-term contract. ADNOC Gas said the deal supports India’s plan to raise the share of natural gas to 15 percent of its energy mix by 2030.By 2029, ADNOC Gas is expected to operate 15.6 mtpa of LNG capacity, with 3.2 mtpa contracted to Indian energy companies. The company said the latest agreement brings the total value of contracts it supports and operates to more than $20 billion, reinforcing India’s position as a key market in its LNG strategy.
