GAIL (India) Limited has signed a 10-year sales and purchase agreement (SPA) with Abu Dhabi’s ADNOC Gas for the delivery of up to 0.52 million metric tonnes per annum (MMTPA) of liquified natural gas (LNG), starting in 2026, the company said on Thursday. This is the first SPA of ADNOC Gas with an Indian buyer.
The LNG will be delivered in six cargoes per year from ADNOC Gas’ Das Island natural gas facility, which has an LNG processing capacity of 6.0 MMTPA. The facility is the third longest established LNG plant still in production globally.
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“India is witnessing a growing demand for LNG to meet its increasing natural gas demand in a diversified sectoral pattern. GAIL plans to significantly increase its term LNG portfolio in the coming years to meet this rising demand,” said Sanjay Kumar, Director (Marketing), GAIL. “This SPA with ADNOC Gas is a crucial step in this direction, enabling GAIL to augment its existing LNG portfolio to better serve its diverse consumer base.”
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India ranked as the fourth-largest importer of LNG globally in 2023, with expectations for further growth in LNG imports over the next decade. The move comes amid the country’s target of increasing the share of natural gas in the country’s total primary energy mix to 15% by 2030, from about 6% today.
“This agreement strengthens ADNOC Gas’ role as a reliable and responsible global natural gas provider and reflects our ambition to capture future growth opportunities in gas demand. It also reinforces our position as a preferred partner for energy solutions in India,” said Rashid Khalfan Al Mazrouei, ADNOC Gas Senior Vice President, Marketing.
Mazrouei noted that global LNG demand is expected to rise by 15% over the next decade, driven by industrial coal-to-gas switching in China and the increased use of LNG for power generation across Southern and Southeast Asia.
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