Published On:November 15 2024
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GAIL Secures 10-Year LNG Supply Deal with ADNOC Gas.

GAIL Secures 10-Year LNG Supply Deal with ADNOC Gas.

India’s largest gas utility, GAIL (India), announced recently the signing of a 10-year Sales and Purchase Agreement (SPA) with UAE-based ADNOC Gas for the supply of up to 0.52 million tonnes per annum (mtpa) of liquified natural gas (LNG) starting in 2026. This is ADNOC Gas’s first SPA with an Indian buyer, marking a milestone in UAE-India energy cooperation.

Under the agreement, ADNOC Gas will deliver LNG in six annual cargoes from its Das Island natural gas facility, one of the world’s oldest LNG plants, with a processing capacity of 6 mtpa.

GAIL Director of Marketing, Sanjay Kumar, emphasized the significance of this partnership in meeting India's rising demand for LNG across diverse sectors, pointing out GAIL’s plans to expand its LNG portfolio in the coming years to support growing energy needs.

Rashid Khalfan Al Mazrouei, Senior VP of Marketing at ADNOC Gas, highlighted that the agreement strengthens ADNOC Gas’s position as a reliable global supplier and partner for India's energy solutions. He noted that with global LNG demand projected to grow by 15% over the next decade, largely due to coal-to-gas shifts in China and increased LNG use for power in Asia, ADNOC Gas plans to double its production capacity.

India, currently the world’s fourth-largest LNG importer, aims to increase the share of natural gas in its primary energy mix from 6% to 15% by 2030, with LNG infrastructure expanding nearly twofold over the past decade to support this shift.

HBL





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