RIYADH: India’s state-owned energy firm, GAIL, will receive a liquefied natural gas supply following the conclusion of a long-term purchase deal with Abu Dhabi’s ADNOC Gas.
The 10-year agreement will see the subsidiary of Abu Dhabi National Oil Co. providing India’s leading natural gas company with 0.5 million metric tonnes of LNG per annum, according to a statement.
This move is expected to fortify India’s energy security, foster economic collaboration, and propel both GAIL and ADNOC into new realms of strategic partnership, the release added.
Simultaneously, the deal will fuel GAIL’s strategic growth objectives to cater to its downstream customers in the rapidly evolving natural gas landscape of the Asian country.
Sandeep Kumar Gupta, chairman and managing director at GAIL, said: “This long-term LNG deal with ADNOC by GAIL will contribute to bridging the gap in India’s demand and supply of natural gas and will open more avenues of strategic partnership between GAIL and ADNOC in other areas of energy domain.”
He further explained that the contract will help India move toward the government’s objective of enhancing the share of natural gas in the country’s energy basket to 15 percent.
On a company level, the deal will help GAIL expand its LNG portfolio to better serve its diverse consumer profile, the chairman added.
According to the terms of the agreement, deliveries will commence across the country starting in 2026.
“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 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,” he added.
Furthermore, this development between the two firms is expected to strengthen the already robust cultural and economic bonds between the UAE and India.
Headquartered in New Delhi, GAIL owns and operates a network of over 16,000 km of natural gas pipelines spread across the country, with concurrent efforts to expand its reach further.
The deal also follows an agreement made in 2022 between GAIL and ADNOC. Both parties agreed to explore collaboration opportunities, including GAIL purchasing LNG from ADNOC for various durations, ranging from short term to medium and long-term.
Additionally, the agreement follows several recent international deals for the sale of LNG signed by ADNOC Gas. These include contracts with the Japan Petroleum Exploration Corp. Ltd., Total Energies, the Indian Oil Corp., and PetroChina.
