$3B ADNOC Gas, HPCL LNG deal supports India’s 2030 gas target

ADNOC Gas will supply 0.5 mtpa of LNG to HPCL.

ADNOC Gas plc has signed a 10-year liquefied natural gas (LNG) sales and purchase agreement with Hindustan Petroleum Corporation Limited (HPCL), valued at between $2.5b and $3b.

The agreement was announced during a visit to India by UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, coinciding with meetings with Indian Prime Minister Narendra Modi.

The contract was exchanged by Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Vikas Kaushal, Chairman and Managing Director of HPCL.

Under the agreement, ADNOC Gas will supply 0.5 million tonnes per annum (mtpa) of LNG to HPCL. It converts a previously signed Heads of Agreement into a binding long-term contract.

Fatema Al Nuaimi, CEO of ADNOC Gas, said the deal strengthens the UAE–India energy partnership and supports India’s plan to increase natural gas to 15% of its energy mix by 2030.

The agreement lifts the total value of contracts supported and operated by ADNOC Gas to more than $20b.

India is now the UAE’s largest LNG customer and a core market for ADNOC Gas.

By 2029, ADNOC Gas will operate 15.6 mtpa of LNG capacity, with 3.2 mtpa contracted to Indian companies, including HPCL.

Supplies will come from the Das Island LNG facility, which has a capacity of up to 6 mtpa and has delivered more than 3,500 LNG cargoes globally.

The deal supports ADNOC Gas’ strategy to expand in India and across Asia, following a series of long-term LNG agreements signed in recent years.