ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has recently inked a 10-year agreement with Hindustan Petroleum Corporation Limited (HPCL) of India to supply 0.5 million metric tonnes per annum (MMtpa) of liquefied natural gas (LNG). This agreement signifies a strengthening of energy ties between the United Arab Emirates (UAE) and India, while also expanding ADNOC Gas's footprint in the high-demand Asian LNG market.

Key Highlights of the Deal:

• Supply Volume: ADNOC Gas will supply 0.5 million metric tonnes of LNG annually to HPCL.
• Duration: The agreement is set for a 10-year term.
• Source: The LNG will be sourced from ADNOC Gas's Das Island liquefaction facility, which has a production capacity of 6 MMtpa.
• Significance: This marks the third such deal between ADNOC Gas and an Indian company within the past year, highlighting the robust energy partnership between the UAE and India.

Strategic Implications for ADNOC Gas:

• Expanded Global Footprint: The deal underscores ADNOC Gas's expanding global presence, particularly in the Asian LNG market, which is experiencing high demand.
• Reliable LNG Supplier: The agreement reinforces ADNOC Gas's position as a reliable global supplier of LNG.
• Production Capacity Growth: ADNOC Gas is investing over $13 billion through 2029 to scale up LNG production domestically and internationally. ADNOC Gas' operated LNG production capacity will increase to over 15 mtpa after the expected acquisition of ADNOC's 60% stake in Ruwais LNG in 2028.

Strategic Implications for India:

• Energy Security: The deal supports India's energy security by providing a stable supply of LNG.
• Diversifying Energy Mix: The agreement aligns with India's ambition to increase the share of natural gas in its primary energy mix to 15% by 2030. India aims to increase the share of natural gas in the country's total primary energy mix to 15 per cent by 2030, from about 6 per cent today.
• Growing LNG Demand: India is witnessing a growing demand for LNG to meet its increasing natural gas needs across various sectors.

ADNOC Gas's Existing Partnerships in India:

This deal with HPCL is not an isolated event but rather a continuation of ADNOC Gas's strategic partnerships with major Indian energy players. ADNOC Gas already supplies to Indian Oil Corporation and GAIL India, further solidifying its commitment to supporting India's energy security. In November 2024, ADNOC Gas signed a 10-year Sales and Purchase Agreement (SPA) with GAIL India Limited to supply up to 0.52 million metric tonnes per annum (mtpa) of liquefied natural gas (LNG), starting in 2026. In September 2024, a 15-year deal was agreed with Indian Oil Corporation to supply 1 million tonnes annually, with deliveries also slated to begin in 2026 via the Ruwais LNG project.

Das Island Liquefaction Facility:

The LNG supplied to HPCL will originate from ADNOC Gas's Das Island liquefaction facility. This facility is one of the world's longest-operating LNG plants, having shipped over 3,500 cargoes since it began operations. The Das Island facility has a production capacity of 6 million metric tonnes per year.

Statements from Leadership:

Fatema Al Nuaimi, CEO of ADNOC Gas, emphasized the significance of the agreement, stating that it reflects the robust energy partnership between the UAE and India. She also highlighted ADNOC Gas's ability to meet rising global demand for LNG and support India's energy goals.

In conclusion, ADNOC Gas's 10-year LNG supply deal with HPCL is a strategic move that benefits both the UAE and India. It strengthens the energy partnership between the two countries, expands ADNOC Gas's global reach, and supports India's growing demand for natural gas.