GAIL Secures 10-Year Deal with ADNOC for 0.5 MTPA LNG Supply Starting 2026

In a major development, GAIL India, the state-run gas utility, announced on Monday that it has inked a substantial long-term contract with the Abu Dhabi National Oil Company (ADNOC) for the procurement of liquefied natural gas (LNG). The agreement, spanning a decade and commencing in 2026, entails the purchase of 0.5 million tonnes per annum (MTPA) of LNG.

The deal stems from a Memorandum of Understanding (MoU) signed on October 30, 2022, between GAIL and ADNOC P.J.S.C. The agreement outlined a collaborative framework for potential areas of cooperation, with a specific focus on LNG procurement by GAIL from ADNOC, covering short-term, medium-term, and long-term tenures.

GAIL India, the largest gas utility in the country, hailed the agreement as a significant stride in reinforcing the cultural and economic ties between India and the United Arab Emirates (UAE).

According to GAIL, deliveries under the agreement will commence in 2026, continuing for the next 10 years, and will be distributed across India. The utility anticipates that the arrangement will not only contribute to India's growing energy security needs but also align with GAIL's strategic objectives in navigating the evolving landscape of natural gas in the country.

Sandeep Kumar Gupta, CMD of GAIL, expressed optimism about the long-term LNG deal, emphasizing its role in bridging the demand-supply gap for natural gas in India. He also highlighted the potential for expanding the strategic partnership between GAIL and ADNOC into other domains of the energy sector.

Sanjay Kumar, Director (Marketing) at GAIL, underscored the broader impact of the agreement, noting that it would significantly augment GAIL's diverse LNG portfolio, catering to a wide consumer profile.

The long-term LNG purchase agreement with ADNOC Gas is expected to fortify India's energy security, foster economic collaboration, and open new avenues for strategic partnership between GAIL and ADNOC in the energy sector.

HBL