Abu Dhabi National Oil Company Gas (ADNOC Gas) and its subsidiaries have signed a long-term agreement to supply liquefied natural gas (LNG) to Hindustan Petroleum Corporation Limited (HPCL). The 10-year deal is valued between $2.5 billion and $3 billion, the companies said on Monday.
The agreement was announced during the visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to India, where he held discussions with Prime Minister Narendra Modi. The deal highlights the growing energy cooperation between India and the United Arab Emirates.
The contract was formally exchanged by Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and Vikas Kaushal, Chairman and Managing Director of HPCL. Under the agreement, ADNOC Gas will supply 0.5 million tonnes of LNG every year to HPCL.
The LNG will be supplied from ADNOC Gas’s Das Island liquefaction facility, which has a production capacity of up to 6 million tonnes per year. This facility is one of the key LNG production hubs in the UAE.
Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said the company is happy to enter into this long-term agreement with HPCL. She said the deal reflects the strong and expanding energy partnership between the UAE and India.
ADNOC Gas also said the agreement turns earlier preliminary discussions into a binding long-term contract. The deal will support India’s goal of increasing the share of natural gas to 15% of its total energy mix by 2030, helping the country move towards cleaner energy sources.