Adnoc Gas signs long-term deal with India’s Gail

Wam

The UAE’s Adnoc Gas has signed a 10-year deal with Gail India, the largest natural gas company in the Asian nation, to supply up to half a million tonnes per annum (mtpa) of liquefied natural gas (LNG) starting in 2026.

The agreement converts the previous heads of agreement announced in January into a definitive agreement, the UAE state-run Wam news agency reported.

The LNG will be supplied from Adnoc Gas’ Das Island liquefaction facility, which has an LNG production capacity of 6 mmtpa.  

Global LNG demand is expected to rise by 15 percent over the next decade, driven by industrial coal-to-gas switching in China and the increased use of LNG for power generation across southern and southeast Asia, said Rashid Al Mazrouei, senior vice president of marketing at Adnoc Gas.

He said that the company is committed to more than doubling its LNG production capacity to capture a larger share of the growing global demand for lower carbon-intensity products.

India is witnessing a growing demand for LNG to meet its increasing gas demand, said Gail director (marketing) Sanjay Kumar.

The company plans to significantly increase its term LNG portfolio in the coming years to meet this rising demand, he added.

• Adnoc Gas considers M&A deals to meet LNG demand
• Revenues of six Adnoc subsidiaries reach $24bn
• Adnoc signs 15-year supply deal for Ruwais LNG

This week, Adnoc Gas announced it expects to acquire Adnoc’s 60 percent stake in the Ruwais LNG plant, at cost, in the second half of 2028, when first production is due.

Ruwais LNG, which includes two LNG trains, each with a production capacity of 4.8 mtpa, will be the first LNG export facility in the Middle East and Africa region to run on clean grid electricity.

When fully operational in 2029, Adnoc Gas’ operated LNG production capacity will more than double to over 15 mtpa.