India’s largest gas utility GAIL has signed a long-term deal to buy liquefied natural gas (LNG) from a unit of UAE’s energy giant Adnoc.
Under the agreement, Adnoc Gas will supply 0.5 mtpa of LNG to GAIL for ten years, starting from 2026, according to a statement by GAIL.
GAIL said this deal follows a memorandum of understanding the two firms signed in October 2022.
This contract will further aid in India’s rising energy security requirements and, simultaneously, also fuel GAIL’s strategic growth objectives to cater to its downstream customers in the rapidly evolving natural gas landscape of the country, it said.
Earlier this month, GAIL also signed a long-term deal to buy 1 mtpa of LNG for a period of 10 years from energy trader Vitol.
The company owns and operates a network of over 16,000 km of natural gas pipelines in India.
GAIL holds a stake in India’s largest LNG importer, Petronet LNG, and buys volumes under long-term LNG deals, including from Qatar and the US.
It also charters LNG carriers and operates the 5 mtpa Dabhol LNG terminal in India.
On the other hand, Adnoc launched Adnoc Gas on January 1, 2023 as it looks to further expand its international presence.
Adnoc Gas signed many LNG supply deals last year. The total value of LNG supply agreements signed by Adnoc Gas since its listing in March last year is between $9.4 billion and $12 billion, the firm said in October last year.
Adnoc owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
Besides this terminal, Adnoc is also working on the second LNG export plant in Al Ruwais with a capacity of 9.6 mtpa.
The company recently signed its first LNG supply deal for this terminal with China’s ENN.
