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

Woodside scraps US hydrogen project

Australian LNG player Woodside has scrapped its proposed H2OK hydrogen project in Ardmore, Oklahoma.

Golden Pass LNG gets new FERC approval as commissioning progresses

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, is moving forward with commissioning activities at its two-train LNG plant in Texas with a new approval from the US FERC.

TotalEnergies, CMA CGM to launch LNG bunkering JV

French energy giant TotalEnergies and compatriot shipping firm CMA CGM have signed a deal to develop a 50/50 logistics joint venture dedicated to the implementation and operation of an LNG bunkering supply solution at the Dutch port of Rotterdam.

More News Like This

GAIL, Vitol finalize 10-year LNG supply deal

India’s largest gas utility, GAIL, has finalized its previously announced long-term deal to buy liquefied natural gas (LNG) from energy trader Vitol.

Adnoc Gas, SEFE ink three-year LNG supply deal

Adnoc Gas, the gas and LNG unit of UAE's Adnoc, has signed a three-year LNG supply deal with German gas importer Securing Energy for Europe (SEFE).

Santos enters exclusive due diligence with Adnoc-led consortium

Australian LNG player Santos has entered into a process and exclusivity agreement with a consortium led by Adnoc's investment unit, XRG, related to the latter's $18.7 billion takeover offer.

India’s ITD Cementation scores Ruwais LNG jetty gig

India's ITD Cementation has won a contract to build a jetty for Adnoc's Al Ruwais LNG export project in the UAE.