Abu Dhabi: GAIL (India) has entered into a 10-year sales and purchase agreement with ADNOC Gas for the supply of up to 0.52 million metric tonnes per annum (MMTPA) of liquified natural gas (LNG), commencing in 2026, as announced in a statement on Thursday.
This agreement marks the inaugural sales and purchase contract between ADNOC Gas and an Indian buyer, the statement further elaborated.
The delivered LNG will be distributed in six shipments annually from ADNOC Gas' Das Island natural gas facility, which boasts an LNG processing capacity of 6.0 MMTPA.
This facility is among the three longest-standing LNG plants operational globally.
Sanjay Kumar, Director (Marketing), GAIL remarked, "India is experiencing a significant increase in the demand for LNG to cater to its growing natural gas consumption across various sectors. GAIL is committed to expanding its LNG portfolio in the forthcoming years to meet this escalating demand."
"This Strategic Partnership Agreement with ADNOC Gas is a pivotal move towards enhancing GAIL's LNG portfolio, thereby enabling it to better serve its diverse customer base."
Rashid Khalfan Al Mazrouei, Senior Vice President, Marketing, ADNOC Gas, stated, "This agreement underscores ADNOC Gas' status as a dependable and accountable global provider of natural gas, aligning with our goal to seize future opportunities in the gas market. It also solidifies our position as a preferred collaborator for energy solutions in India."
The global demand for LNG is anticipated to increase by 15 percent over the next decade, propelled by the shift from coal to gas in the industrial sector in China and the expansion of LNG usage for power generation in Southern and Southeast Asia.
GAIL, a Maharatna Central Public Sector Enterprise, stands as the leading natural gas transmission and distribution entity in India, with a comprehensive portfolio including gas transmission and distribution pipelines, processing and petrochemicals plants, and interests in upstream oil and gas blocks and LNG regasification terminals across India.
