Abu Dhabi’s ADNOC Gas sealed a major LNG sales and purchase deal valued at between $2.5-$3bn for a period of ten years with Hindustan Petroleum Corporation Limited (HPCL).
The two firms signed the sales and purchase agreement (SPA) during a visit to India by UAE president Sheikh Mohamed bin Zayed Al Nahyan for talks with Indian prime minister Narendra Modi on Monday.
The two leaders welcomed the signing of the 10-year LNG supply agreement between Hindustan Petroleum Corporation Limited (HPCL) and ADNOC Gas for the delivery of 0.5 million tonnes per year of liquefied natural gas (LNG), beginning in 2028.
India is now UAE’s largest customer of LNG with 20% of LNG operated by ADNOC Gas to be supplied to India by 2029.
This agreement converts a previously signed heads of agreement between the two companies into a long-term SPA and is valued at approximately $2.5-$3bn over its duration, for the export of 0.5 million tonnes per annum (mtpa) of liquefied natural gas (LNG).
It now brings the total value of contracts being supported and operated by ADNOC Gas to over $20bn.
By 2029, ADNOC Gas said it will be the operator for 15.6 mtpa of LNG and of that 3.2 mtpa is contracted to Indian energy companies, including HPCL.
This agreement will be supplied from ADNOC Gas’ Das Island liquefaction facility, according to ADNOC Gas, which has a production capacity of up to 6 mtpa.
Fatema Al Nuaimi, chief executive officer of ADNOC Gas, said: “We are pleased to sign this long-term LNG supply agreement with Hindustan Petroleum Corporation which reflects the strong and growing energy partnership between the UAE and India.
“This agreement underscores ADNOC Gas’ commitment to delivering reliable LNG to meet global demand, while supporting India’s ambition to increase natural gas to 15% of its energy mix by 2030.”
