ADNOC Gas signs multi-year LNG supply agreement with GAIL India

ADNOC Gas has signed a 10-year liquefied natural gas (LNG) supply agreement with GAIL India to deliver 0.5 million metric tonnes annually.

The deal with GAIL India follows several LNG sales agreements including those with Japan Petroleum Exploration Company, TotalEnergies Gas and Power, Indian Oil Corporation (IOCL), and PetroChina International.

“This long-term LNG supply agreement with GAIL India marks a significant step forward in our commitment to continue providing reliable and sustainable energy solutions to our partners and customers around the world,” said Dr. Ahmed Mohamed Alebri, CEO of ADNOC Gas.

“India continues to be a key market for ADNOC Gas, and this latest supply agreement underscores our ongoing dedication to fostering long-term partnerships that promote responsible energy consumption.”

The energy firm signed a 14-year supply agreement with IOCL for the export of up to 1.2 million metric tonnes per annum (mmtpa) of LNG in July.

The deal is valued in the range of $7bn to $9bn (Dhs25.7 to Dhs33bn) and will see ADNOC Gas deliver up to 1.2 mmtpa of LNG to IOCL in India.

ADNOC Gas maintained a strong sales momentum in 2023, signing LNG deals valued between $9.4bn (Dhs34.5bn) and $12bn (Dhs44bn).

ADNOC Gas bolsters its LNG capabilities

ADNOC Gas continues to invest domestically to position itself to meet both local and international demand for natural gas. It also plans to more than double its LNG production capacity to meet rising global demand through its new project.

The company continues to leverage opportunities arising from ADNOC Group’s integrated gas master plan to ensure a sustainable and economic supply of natural gas to meet local and international demand.

Within the energy its broader gas masterplan, the state-owned energy firm invested $3.6bn to boost gas processing capabilities at its Al Ruwais Industrial City.

The Ruwais LNG project is set to be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power.  When completed, it is expected to consist of two 4.8 million metric tons per annum (mmtpa) LNG liquefaction trains with a total capacity of 9.6 mmtpa.

Read: ADNOC Gas invests $3.6bn to boost gas processing capabilities