What's Happening?
ADNOC Gas has finalized a long-term liquefied natural gas (LNG) sales and purchase agreement with Hindustan Petroleum Corporation Limited. This 10-year contract, valued between $2.5 billion and $3 billion, involves the supply of 0.5 million tonnes per
year of LNG. The deliveries will be sourced from ADNOC Gas’s Das Island liquefaction facility, one of the longest-operating LNG plants globally. This agreement converts a previously signed heads of agreement into a binding deal, adding to a series of long-term contracts ADNOC Gas has secured with Indian buyers. By 2029, ADNOC Gas plans to operate 15.6 million tonnes per annum (MMtpa) of LNG capacity, with over 3 MMtpa contracted to Indian companies. India has become the UAE’s largest LNG customer as it seeks to increase the role of natural gas in its energy mix.
Why It's Important?
This agreement underscores the growing energy ties between the UAE and India, reflecting the increasing demand for LNG in Asia. For ADNOC Gas, this deal supports its strategy to expand LNG sales into fast-growing Asian markets, ensuring long-term demand for its gas portfolio. The agreement is significant as it strengthens the UAE's position in the global LNG market, particularly in Asia, where energy consumption is rapidly increasing. This move also aligns with global trends towards cleaner energy sources, positioning ADNOC Gas as a key player in meeting the rising energy needs of Asian economies.
