On January 29, state-run GAIL (India) sealed a significant long-term liquefied natural gas (LNG) purchase agreement with Abu Dhabi National Oil Company (ADNOC) Gas for approximately 0.5 million metric tonnes per annum (MMTPA) of LNG.
GAIL, in a press release, revealed that the LNG deliveries under this agreement are set to commence from 2026, spanning a 10-year duration across India. The agreement stems from a Memorandum of Understanding (MoU) dated October 30, 2022, between GAIL and ADNOC, wherein both parties expressed interest in exploring collaboration opportunities, including the potential purchase of LNG by GAIL from ADNOC for various tenures, ranging from short term to medium and long-term.
Sandeep Kumar Gupta, Chairman & Managing Director of GAIL, stated that this long-term LNG deal is a significant step towards meeting India’s demand for natural gas, contributing to the bridging of the demand-supply gap. He emphasized that the agreement will not only strengthen the energy sector but also pave the way for broader strategic partnerships between GAIL and ADNOC in other areas of the energy domain.
GAIL anticipates that the deal will enhance the existing cultural and economic ties between India and the United Arab Emirates (UAE). According to Sanjay Kumar, Director (Marketing) at GAIL, the long-term agreement aligns with the Indian government’s objective of increasing the share of natural gas in the country’s energy mix to 15 percent. Additionally, the deal will enable GAIL to expand its substantial LNG portfolio, catering to a diverse consumer base.
In its press release, GAIL highlighted that the long-term LNG purchase agreement with ADNOC Gas is expected to strengthen India’s energy security, foster economic collaboration, and propel both GAIL and ADNOC into new realms of strategic partnership.