New Delhi: GAIL (India) Limited has successfully concluded a long-term LNG purchase agreement for the purchase of around 0.5 MMTPA LNG from ADNOC Gas. "This is pursuant to an MoU dated October 30, 2022 between GAIL and Abu Dhabi National Oil Company (ADNOC) P.J.S.C wherein Parties agreed that, in potential areas of collaboration both parties shall explore opportunities including purchase of LNG by GAIL from ADNOC for a tenure ranging from short term to medium and long-term," GAIL said in an official statement.
This significant development between GAIL and ADNOC will reinforce the robust cultural and economic bonds between India and the United Arab Emirates (UAE).
Under this agreement, the deliveries will commence from 2026 onwards for a duration of 10 years, across India. This arrangement is believed to further aid in India’s rising energy security requirements and, simultaneously, also fuel GAIL’s strategic growth objectives to cater to its downstream customers in the rapidly evolving Natural Gas landscape of the country.
Speaking on this, GAIL's Chairman & Managing Director (CMD) Sandeep Kumar Gupta said on this long-term LNG deal that this long-term LNG deal with ADNOC by GAIL will contribute to bridging gap in India’s demand and supply of natural gas and will open more avenues of strategic partnership between GAIL and ADNOC in other areas of energy domain.
Underlining the broader impact of the agreement, GAIL's Director (Marketing) Sanjay Kumar stated that this long-term LNG transaction by GAIL will help India in moving towards Government of India’s objective of enhancing share of natural gas in India’s energy basket to 15 percent. Further, this deal will also help GAIL to augment its significantly large LNG portfolio to serve its diverse consumer profile.
"The long-term LNG purchase agreement with ADNOC Gas is anticipated to fortify India's energy security, foster economic collaboration, and propel both GAIL and ADNOC into new realms of strategic partnership," the Maharatna gas PSU added.