GAIL (India) Ltd. has secured a landmark 10-year sales and purchase agreement (SPA) with ADNOC Gas for the supply of up to 0.52 million metric tonnes per annum (MMTPA) of liquefied natural gas (LNG), set to begin in 2026. This marks ADNOC Gas’ first-ever LNG sales agreement with an Indian buyer.
Under the terms of the deal, LNG will be delivered in six cargoes annually from ADNOC Gas’ Das Island facility, which boasts an LNG processing capacity of 6.0 MMTPA. The Das Island facility is recognized as one of the world’s longest-established LNG plants still in operation.
Sanjay Kumar, Director of Marketing at GAIL, emphasized the growing demand for LNG in India, citing its increasing use across a variety of sectors. “India’s LNG demand is on the rise, and GAIL is focused on expanding its LNG portfolio to meet this demand,” Kumar said. “This agreement is a key part of that strategy, allowing us to enhance our supply capabilities to serve our diverse customer base.”
Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC Gas, highlighted the significance of the agreement, noting it reinforces ADNOC Gas’ commitment to being a reliable global energy provider. “This agreement strengthens our position as a preferred energy partner in India and supports our broader strategy to capture growth in global LNG demand,” said Al Mazrouei.
The global LNG market is expected to grow by 15% over the next decade, driven by factors like industrial coal-to-gas switching in China and increased LNG use for power generation in Southern and Southeast Asia. ADNOC Gas is aiming to more than double its LNG production capacity to capitalize on these growth opportunities.
India is poised for significant LNG import growth in the coming years, currently ranking as the fourth-largest LNG importer globally. The country is also targeting a boost in natural gas’ share of its primary energy mix to 15% by 2030, up from around 6% today.
As part of its expansion, India has enhanced its LNG regasification infrastructure, nearly doubling its capacity from 21 MMTPA in 2014.
GAIL, a Maharatna Central Public Sector Enterprise, is India’s leading natural gas transmission and distribution company. Its operations span gas transmission, processing, and petrochemical plants, along with stakes in upstream oil and gas blocks and LNG regasification terminals.
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