India is now the UAE’s largest customer of ADNOC LNG Gas
ADNOC Gas recently announced the signing of a sales and purchase agreement valued at between US$ 2.5bn to US $3bn for a period of ten years with Hindustan Petroleum Corporation Limited (HPCL), according to a corporate press release.
The agreement was announced during a visit to India by the President HH Sheikh Mohamed Bin Zayed Al Nahyan, where he met with the Indian Prime Minister, Narendra Modi.
During the visit, HE Dr. Sultan Ahmed Al Jaber, the UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO and Vikas Kaushal, Chairman and Managing Director, Hindustan Petroleum Corporation Limited, exchanged the signed contract, reiterating the importance of the growing relationship between ADNOC, its partners and customers in India.
Commitment
“This agreement underscores ADNOC Gas’ commitment to delivering reliable LNG to meet global demand, while supporting India’s ambition to increase natural gas to 15% of its energy mix by 2030,” stated Fatema Al Nuaimi, Chief Executive Officer, ADNOC Gas.
This agreement converts a previously signed Heads of Agreement between the two companies into a long-term SPA and is valued at approximately US$ 2.5bn to US 3bn over its duration, for the export of 0.5mn 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 US$ 20bn. India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy. The company’s growth is tied to the continued success of India.
By 2029 ADNOC Gas 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, which has a production capacity of up to 6 mtpa and ranks among the world’s longest-operating LNG plants.
