Adnoc Gas, a subsidiary of Abu Dhabi National Oil Company, has signed a liquefied natural gas supply deal with a leading Indian player, as the Emirati giant continues to expand its presence in the Asian market.
Adnoc is building a 9.6 million tonnes per LNG export terminal at Al Ruwais in Abu Dhabi to cater to several international gas markets.
The Al Ruwais facility is crucial to Abu Dhabi’s ambition to emerge as a key gas exporter in the Middle East region.
Adnoc Gas has concluded a long-term LNG agreement to supply around 500,000 tpa of LNG to Gail, the Indian player confirmed on Monday.
“Under this agreement, the deliveries will commence from 2026 onwards for a duration of 10 years across India,” Gail noted.
The LNG supply deal follows an initial memorandum of understanding signed between the two parties in 2022, involving exploring opportunities in potential areas of collaboration.
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Sandeep Kumar Gupta, managing director of Gail, said that the long-term LNG deal with Adnoc “will contribute to bridging the gap in India’s demand and supply of natural gas and will open more avenues of strategic partnership between Gail and Adnoc in other areas of energy domain”.
Adnoc Gas last year signed multiple LNG supply deals, together valued at between $9.4 billion and $12 billion, as the state giant continues to invest heavily in gas-based developments.
In October, it signed a multi-year LNG supply deal with Japan’s Jera, valued “between $500 million and $700 million”, Upstream reported.
Adnoc Gas also signed multiple long-term LNG supply agreements in 2023 including deals with PetroChina International, Japan Petroleum Exploration Company, French giant TotalEnergies and India Oil Corporation.