ADNOC Gas signs up to $3 billion LNG supply deal with India’s HPCL

Dubai: ADNOC Gas said on Monday it had signed a long-term liquefied natural gas supply agreement with India’s Hindustan Petroleum Corporation Limited (HPCL), valued at about $2.5 billion to $3 billion over ten years, strengthening energy ties between the UAE and India.

The sales and purchase agreement covers the supply of 0.5 million tonnes per annum (mtpa) of LNG and converts a previously signed heads of agreement into a binding long-term contract. Deliveries will be sourced from ADNOC Gas’ Das Island liquefaction facility, one of the world’s longest-operating LNG plants.

The deal was announced during a visit to India by UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, where he met Indian Prime Minister Narendra Modi. ADNOC Managing Director and Group CEO Sultan Ahmed Al Jaber and HPCL Chairman and Managing Director Vikas Kaushal exchanged the signed agreement during the visit.

“This agreement reflects the strong and growing energy partnership between the UAE and India,” Fatema Al Nuaimi, chief executive of ADNOC Gas, said in a statement. She added that the deal supports India’s ambition to raise natural gas to 15% of its energy mix by 2030.

Largest LNG customer

ADNOC Gas said India has become the UAE’s largest LNG customer and a central part of its LNG growth strategy. The HPCL contract brings the total value of LNG agreements supported and operated by ADNOC Gas with Indian companies to more than $20 billion over the past 24 months.

By 2029, ADNOC Gas expects to be the operator for 15.6 mtpa of LNG capacity, with 3.2 mtpa contracted to Indian energy firms, including HPCL. That would mean roughly 20% of ADNOC Gas-operated LNG volumes will be supplied to India.

Das Island has a production capacity of up to 6 mtpa and has shipped more than 3,500 LNG cargoes worldwide since operations began, ADNOC Gas said.

The company said the agreement aligns with its strategy to expand its presence in India and other high-growth Asian markets. Over the past three years, ADNOC Gas has secured multiple long-term LNG contracts ranging from 0.4 to 1.2 mtpa, with durations of up to 14 years, reinforcing its position as a major supplier of LNG to Asia.