GAIL Signs 10-Year LNG Agreement with ADNOC Gas for 0.52 MMTPA Supply
GAIL (India) Ltd. has signed a 10-year deal with ADNOC Gas to supply 0.52 MMTPA of LNG starting in 2026. The agreement boosts India's LNG imports, supporting its goal to increase natural gas in its energy mix to 15 percent by 2030.
November 15, 2024. By EI News Network
Under the agreement, GAIL will receive up to 0.52 million metric tonnes per annum (MMTPA) of liquefied natural gas (LNG), set to begin deliveries in 2026. The LNG will be delivered in six cargoes per year from ADNOC’s Das Island natural gas facility, which has an LNG processing capacity of 6.0 MMTPA. This plant is among the longest-established LNG facilities still in operation globally, showcasing ADNOC Gas’ capacity to serve international markets.
This agreement is part of GAIL’s broader strategy to bolster its LNG portfolio to meet India’s growing demand for natural gas across diverse sectors. GAIL’s Director (Marketing), Kumar, emphasised the increasing need for LNG in India’s energy mix, reflecting the country’s goal to diversify its natural gas consumption.
"India is witnessing a growing demand for LNG to meet its increasing natural gas demand in a diversified sectoral pattern. This SPA with ADNOC Gas is a crucial step in this direction, enabling GAIL to augment its existing LNG portfolio," said Kumar.
ADNOC Gas, led by Senior Vice President Rashid Khalfan Al Mazrouei, views the agreement as a strategic move to strengthen its position as a global gas supplier. He highlighted the potential for further growth in global LNG demand, driven by trends such as industrial coal-to-gas switching in China and increased use of LNG for power generation in Southern and Southeast Asia.
India, which ranked as the fourth-largest LNG importer globally in 2023, expects significant growth in its LNG imports over the next decade. The country aims to raise the share of natural gas in its primary energy mix from 6 percent today to 15 percent by 2030. Furthermore, India has been expanding its LNG regasification infrastructure, doubling its capacity in recent years, reinforcing the nation's long-term energy goals.
The agreement with ADNOC Gas strengthens GAIL’s position in the growing LNG market, supporting India’s energy transition while contributing to a more sustainable energy future.
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