Monday, 4 August 2025

πŸ›’️ ADNOC Gas Signs 10-Year LNG Deal with India’s Hindustan Petroleum, Expanding Asian Energy Ties

 

RIYADH — August 1, 2025:
Abu Dhabi’s ADNOC Gas has signed a 10-year agreement with Hindustan Petroleum Corp. Ltd (HPCL) to supply 500,000 metric tonnes of liquefied natural gas (LNG) annually, strengthening its position in fast-growing Asian energy markets.

The LNG will be sourced from ADNOC Gas’ Das Island liquefaction facility, which boasts a production capacity of 6 million metric tonnes per year. While the financial value of the deal was not disclosed, the agreement marks a major milestone in the UAE's energy cooperation with India.

“This long-term agreement with HPCL, our third with Indian companies in the past year, reflects the robust energy partnership between the UAE and India,” said Fatema Al-Nuaimi, CEO of ADNOC Gas.


πŸ”— Strengthening UAE-India Energy Cooperation

The deal builds on ADNOC Gas’ expanding relationship with Indian energy giants. In the last year alone, ADNOC Gas has:

  • Signed a 14-year LNG supply agreement with Indian Oil Corporation (valued between $7–9 billion) in February 2024 for up to 1.2 million tonnes per annum.

  • Sealed a 15-year deal with Indian Oil in September 2024 for 1 million tonnes annually.

  • Entered a 10-year LNG supply agreement with GAIL India in January 2024.

These moves are part of India’s broader push to increase the share of natural gas to 15% of its primary energy mix by 2030, as it shifts toward cleaner and more sustainable energy sources.


🌏 Das Island LNG Facility: A Regional Export Hub

ADNOC’s Das Island LNG facility, operational for decades, is one of the world’s longest-running liquefaction plants, with over 3,500 cargoes shipped since inception. The plant continues to serve as a cornerstone of ADNOC’s international LNG operations.

“This milestone underscores ADNOC Gas’ ability to reliably meet rising global demand for LNG and support India’s ambition for energy diversification,” added Al-Nuaimi.


πŸ“ˆ ADNOC’s $13 Billion LNG Expansion Plan

In April 2024, ADNOC Gas announced plans to invest more than $13 billion by 2029 to scale up LNG production both within the UAE and internationally. These investments aim to:

  • Expand ADNOC’s global LNG export capacity.

  • Meet increasing demand in Asia, especially from energy-hungry markets like India and China.

  • Enhance the UAE’s role as a key player in the global energy transition.

“ADNOC Gas is a key pillar in ADNOC’s strategy to increase natural gas production and reinforce the UAE’s position in the international LNG market,” the company said in a statement.


🌐 Strategic Impact

This latest agreement with HPCL is part of a broader trend of Middle East–South Asia energy collaboration, driven by:

  • Rising LNG demand across Asia.

  • India’s push for cleaner energy sources.

  • The UAE’s ambition to diversify its energy exports and cement its role as a reliable global supplier.

With LNG demand forecast to grow steadily through 2030, ADNOC’s deals position it as a leading long-term supplier in Asia’s energy landscape.


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