GAIL signs 10-year LNG deal with ADNOC gas
OIL & GAS

GAIL signs 10-year LNG deal with ADNOC gas

GAIL (India) Limited has entered a landmark 10-year Sales and Purchase Agreement (SPA) with UAE-based ADNOC Gas for the supply of up to 0.52 million metric tonnes of liquefied natural gas (LNG) annually, starting in 2026. This agreement represents ADNOC Gas’s first long-term LNG deal with an Indian buyer.

Under the agreement, ADNOC Gas will deliver six LNG cargoes per year from its Das Island facility, which has a processing capacity of 6 million metric tonnes per annum (MMTPA).

Sanjay Kumar, Director (Marketing) at GAIL, emphasised the growing demand for LNG in India, stating, “This SPA is a key step in expanding GAIL’s LNG portfolio to meet diverse consumer needs.”

Rashid Khalfan Al Mazrouei, Senior Vice President of ADNOC Gas, highlighted the agreement’s strategic importance, adding, “It strengthens ADNOC Gas’s position as a global natural gas provider and underscores our role as a trusted energy partner for India.”

Global LNG demand is projected to grow by 15% over the next decade, driven by China’s transition from coal to gas and increased LNG use for power generation in Southern and Southeast Asia. ADNOC Gas plans to more than double its LNG production capacity to capitalise on this demand for lower-carbon energy solutions.

India, the world’s fourth-largest LNG importer in 2023, is poised for further growth in LNG imports as the nation seeks to increase the share of natural gas in its primary energy mix from 6% to 15% by 2030. (ET) ?

GAIL (India) Limited has entered a landmark 10-year Sales and Purchase Agreement (SPA) with UAE-based ADNOC Gas for the supply of up to 0.52 million metric tonnes of liquefied natural gas (LNG) annually, starting in 2026. This agreement represents ADNOC Gas’s first long-term LNG deal with an Indian buyer. Under the agreement, ADNOC Gas will deliver six LNG cargoes per year from its Das Island facility, which has a processing capacity of 6 million metric tonnes per annum (MMTPA). Sanjay Kumar, Director (Marketing) at GAIL, emphasised the growing demand for LNG in India, stating, “This SPA is a key step in expanding GAIL’s LNG portfolio to meet diverse consumer needs.” Rashid Khalfan Al Mazrouei, Senior Vice President of ADNOC Gas, highlighted the agreement’s strategic importance, adding, “It strengthens ADNOC Gas’s position as a global natural gas provider and underscores our role as a trusted energy partner for India.” Global LNG demand is projected to grow by 15% over the next decade, driven by China’s transition from coal to gas and increased LNG use for power generation in Southern and Southeast Asia. ADNOC Gas plans to more than double its LNG production capacity to capitalise on this demand for lower-carbon energy solutions. India, the world’s fourth-largest LNG importer in 2023, is poised for further growth in LNG imports as the nation seeks to increase the share of natural gas in its primary energy mix from 6% to 15% by 2030. (ET) ?

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