GAIL (India) has signed an MoU to purchase approximately 0.5 MMTPA LNG from ADNOC. The delivery will start from 2026 for 10 years.
Jan 29, 2023
GAIL (India) Limited, India’s largest natural gas company, has successfully concluded a long-term LNG purchase agreement for the purchase of approximately 0.5 MMTPA LNG from Abu Dhabi National Oil Company (ADNOC) Gas. The MoU signed between GAIL and ADNOC Gas states that in potential areas of collaboration, both parties shall explore opportunities including the purchase of LNG by GAIL from ADNOC for a tenure ranging from short-term to medium and long-term. This significant development between GAIL and ADNOC will reinforce the robust cultural and economic bonds between India and the United Arab Emirates (UAE). Under this agreement, the deliveries will commence from 2026 onwards for 10 years, across India.
The long-term LNG purchase agreement with ADNOC Gas is anticipated to fortify India’s energy security, foster economic collaboration, and propel both GAIL and ADNOC into new realms of strategic partnership. This arrangement is believed to further aid in India’s rising energy security requirements and, simultaneously, also fuel GAIL’s strategic growth objectives to cater to its downstream customers in the rapidly evolving Natural Gas landscape of the country.
Mr. Sandeep Kumar Gupta, Chairman & Managing Director, GAIL (India) Limited said, “This long-term LNG deal with ADNOC by GAIL 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.”
Underlining the broader impact of the agreement, Mr. Sanjay Kumar, Director (Marketing), GAIL stated that this long-term LNG transaction by GAIL will help India in moving towards the Government of India’s objective of enhancing its share of natural gas in India’s energy basket to 15 percent. Further, this deal will also help GAIL to augment its significantly large LNG portfolio to serve its diverse consumer profile.