India’s state-owned utility and LNG importer, GAIL, is looking to buy liquefied natural gas in the future from UAE’s Adnoc.
The two firms signed a memorandum of understanding on Monday to explore collaboration opportunities in LNG supply and decarbonization, including short and long-term LNG sales agreements, according to a statement by Adnoc.
Also, the deal includes potential optimization of LNG trading activities, the review of joint equity investments in renewables and the monitoring of greenhouse gasses for LNG cargoes, to support low carbon LNG supplies, Adnoc said.
GAIL is one of India’s largest natural gas companies with integrated operations across the value chain.
India’s monthly LNG imports have been declining this entire year mostly due to very high spot prices.
GAIL holds a stake in India’s largest LNG importer, Petronet LNG, and buys volumes under long-term LNG deals from Russia, Qatar, and the US.
It also charters LNG carriers and operates the 5 mtpa Dabhol LNG terminal in India.
On the other hand, Adnoc has been very active in the LNG industry this year signing deals with OMV, RWE, AG&P, and others.
Adnoc owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
According to Adnoc, the Fujairah LNG terminal would have two 4.8 mtpa LNG trains, boosting the company’s LNG production capacity by 9.6 Mtpa, as it looks to respond to the growing global demand for natural gas.