Adnoc, GAIL seal long-term LNG supply deal

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.

Most Popular

Shell wraps up acquisition of Pavilion Energy

UK-based LNG giant Shell has completed its previously announced acquisition of Singapore's Pavilion Energy.

India’s ONGC approves Mozambique LNG investment

India’s state-run ONGC has approved an investment by its unit, ONGC Videsh, into the TotalEnergies-led Mozambique LNG joint venture, which is developing a 12.8 mtpa liquefaction plant at the Afungi complex.

Australia’s Viva Energy seeks FSRU for Geelong project

Australia’s Viva Energy is looking to secure a floating storage and regasification Unit (FSRU) for its proposed LNG import terminal in Geelong, Australia.

More News Like This

Adnoc’s XRG wraps up Mozambique deal

Adnoc's investment unit XRG has completed the purchase of Galp’s 10 percent interest in the Area 4 concession of the Rovuma basin in Mozambique, which includes Eni’s Coral South FLNG project.

Adnoc, Osaka Gas finalize Ruwais LNG supply deal

UAE's Adnoc has signed a 15-year sales and purchase agreement with Japan’s Osaka Gas to supply the latter with liquefied natural gas from its LNG terminal in Al Ruwais.

Adnoc wraps up $2.84 billion offering of Adnoc Gas shares

UAE's energy giant Adnoc has completed a $2.84 billion marketed offering in its gas and LNG unit Adnoc Gas.

UAE’s Adnoc, India’s BPCL seal LNG supply deal

A unit of UAE’s Adnoc has signed a deal with India's state-run Bharat Petroleum Corp (BPCL) to supply the latter with liquefied natural gas (LNG).