ADNOC Gas has entered into a ten-year sales and purchase agreement (SPA) with GAIL India for the supply of up to 520,000 tonnes per annum (tpa) of LNG from 2026.
This agreement solidifies the previous HOA announced in January between ADNOC Gas and GAIL.
In 2023, India was the fourth-largest LNG importer globally, with expectations for continued growth in LNG imports over the next decade.
It aims to increase the share of natural gas in its primary energy mix to 15% by 2030, up from the current 6%.
Furthermore, India's LNG regasification infrastructure has doubled in capacity from 21 million tonnes per annum (mtpa) in 2014, supporting the country's growing energy demands.
GAIL director (marketing) Sanjay Kumar said: “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.
“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.”
The LNG will be sourced from ADNOC Gas' Das Island liquefaction facility, which boasts an LNG production capacity of 6mtpa.
The Das Island facility is reportedly one of the longest-operating LNG plants still in production globally, having shipped more than 3,500 LNG cargoes since commencing operations in 1977.
ADNOC Gas senior vice-president marketing Rashid Khalfan Al Mazrouei said: “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.
"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 South East Asia. We are committed to more than doubling our LNG production capacity as part of our strategy to capture a larger share of the growing global demand for lower-carbon intensity products like ours.”
ADNOC Gas is set to bolster its international growth by acquiring ADNOC’s 60% stake in the Ruwais LNG plant by the second half of 2028.
Ruwais LNG, with two LNG trains and a total capacity of 4.8mtpa, will be the first LNG export facility in the Middle East and Africa to use clean grid electricity.
The plant will integrate AI and advanced digital technologies to enhance safety, reduce emissions and improve efficiency.
Upon full operation in 2029, ADNOC Gas' LNG production capacity will exceed 15mtpa, more than doubling its current capacity.
