ADNOC Gas Inks 10-Year LNG Supply Deal with India's GAIL

(Reuters) — ADNOC Gas on Tuesday signed a 10-year agreement to supply 0.5 million metric tons per year of liquefied natural gas (LNG) to India's largest natural gas company, GAIL (India) Limited.

ADNOC Gas's parent Abu Dhabi National Oil Company has sharpened its focus on the gas market, seeing it as a transition fuel as the world tries to curb planet-warming emissions, and as competition for LNG has ramped up since Russia's invasion of Ukraine in February 2022.

"India continues to be a key market for ADNOC Gas, and this latest supply agreement underscores our ongoing dedication to fostering long-term partnerships that promote responsible energy consumption," Ahmed Mohamed Alebri, ADNOC Gas chief executive said.

Gas consumption in India would rise to over 500 million standard cubic meters a day (MMscm/d) by 2030 from the present 155 MMscm/d, Indian oil minister Hardeep Singh Puri said earlier in January.

GAIL has an LNG portfolio of around 14 million tons per year comprising supplies from countries including the USA, Qatar, Australia and Russia, based on its 2022/23 annual report.

ADNOC Gas said it signed multiple international LNG agreements in 2023 worth $9.4 - $12 billion (34.5-44 billion dirhams) with companies including TotalEnergies, Indian Oil Corporation, and PetroChina International.

ADNOC has said it plans to more than double its LNG production capacity to meet rising global demand for through the Ruwais plant, which is set to be the first LNG export facility in the region to run on clean power.

($1 = 3.6724 UAE dirham)

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