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ADNOC Gas, a subsidiary of the UAE’s Abu Dhabi National Oil Company (ADNOC), has signed off on a multi-year liquefied natural gas (LNG) agreement with India’s Hindustan Petroleum Corporation Limited (HPCL).
ADNOC Gas’ 10-year sales and purchase agreement (SPA) with Hindustan Petroleum Corporation, which is valued at between $2.5 – $3 billion, was announced during a visit to India by President Sheikh Mohamed bin Zayed Al Nahyan , where he met with the country’s Prime Minister, Narendra Modi . Dr. Sultan Ahmed Al Jaber , UAE’s Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Vikas Kaushal , Chairman and Managing Director of HPCL, exchanged the signed contract, reiterating the importance of the growing relationship between ADNOC, its partners, and customers in India.
This agreement converts a previously signed heads of agreement (HOA) between the two companies into a long-term SPA for the export of 0.5 million tonnes per annum (mtpa) of LNG, representing a further step in strengthening the partnership between the UAE and India, while reinforcing ADNOC Gas’ role as a supplier of LNG to Asia’s fast-growing markets.
Fatema Al Nuaimi , Chief Executive Officer of ADNOC Gas, commented: “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.”
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The latest deal now brings the total value of contracts being supported and operated by the firm to over $20 billion. India is now the UAE’s largest customer. By 2029, ADNOC Gas will be the operator for 15.6 mtpa of LNG, out of which 3.2 mtpa is contracted to Indian energy companies, including HPCL.
The LNG for the latest deal will be supplied from the UAE player’s Das Island liquefaction facility, which has a production capacity of up to 6 mtpa. Since operations began, the plant has delivered over 3,500 LNG cargoes globally. The agreement with HPCL aligns with ADNOC Gas’ strategy to broaden its customer base and expand its presence in India and key growth markets across Asia.
The company has secured a series of long-term LNG agreements over the past three years, ranging from 0.4 to 1.2 mtpa, with contract durations of up to 14 years. The latest deal follows the natural gas supply agreement ADNOC Gas won with EMSTEEL.