Adnoc Gas signs 10-year LNG supply agreement with GAIL India
- 30 Jan 2024
Adnoc Gas on Tuesday announced a 10-year agreement to supply 0.5 million metric tonnes per annum (mmtpa) of Liquified Natural Gas (LNG) to GAIL India Limited, India’s leading natural gas company.
This agreement underscores Adnoc Gas’ growing global presence, particularly in the Asian LNG market and further reinforces the relationship between the UAE and India.
This agreement follows several significant international LNG sales agreements, including those with Japan Petroleum Exploration Co, (JAPEX), TotalEnergies Gas and Power, Indian Oil Corporation (IOCL), and PetroChina International (PCI), underscoring Adnoc Gas’ position as a global export partner of choice.
The world continues to witness long-term structural demand growth for natural gas, an important fuel in a just and responsible global energy transition.
Adnoc Gas remains focused on investments that will drive sustainable growth for its business, aligned with customer demand.
In 2023, Adnoc Gas maintained a strong sales momentum signing several LNG agreements valued between $9.4 billion (Dhs34.5 billion) and $12 billion (Dhs44 billion), while continuing to invest domestically to position itself to meet both local and international demand for natural gas.
Dr. Ahmed Mohamed Alebri, Chief Executive Officer of Adnoc Gas, said, “This long-term LNG supply agreement with GAIL India marks a significant step forward in our commitment to continue providing reliable and sustainable energy solutions to our partners and customers around the world.”
“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.”
Natural gas plays a crucial role as a transitional fuel, with lower carbon emissions compared to other fossil fuels.
It also serves as an important raw material in industrial value chains.
Adnoc Gas continues to leverage opportunities arising from Adnoc’s integrated gas masterplan, which links every part of the gas value chain in the UAE, ensuring a sustainable and economic supply of natural gas to meet local and international demand.
Within the Adnoc Group’s broader Gas masterplan, Adnoc is progressing a new low-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi.
The Ruwais LNG project is set to be the first LNG export facility in the Middle East and North Africa (Mena) region to run on clean power, making it one of the lowest-carbon intensity LNG plants in the world, supporting Adnoc’s accelerated Net Zero by 2045 ambition.
When completed, the project, is expected to consist of two 4.8 mmtpa LNG liquefaction trains with a total capacity of 9.6 mmtpa.
Meanwhile UAE President His Highness Sheikh Mohamed Bin Zayed Al Nahyan has presided over the annual meeting of the Adnoc Board of Directors in his capacity as its Chairman.
During the meeting, which was held at Adnoc Headquarters, His Highness directed ADNOC to grow its diversified portfolio and provide secure, reliable and responsible energy to support the delivery of a just, orderly and equitable global energy transition.
As Adnoc continues to transform, decarbonise and future-proof its business, His Highness noted that the company is tripling its renewable energy capacity through its shareholding in Masdar while delivering tangible actions towards its interim targets of reducing its greenhouse gas intensity by 25 per cent and achieving near-zero methane emissions by 2030. His Highness said that this continued focus underlines the UAE’s long-term commitment to supporting global energy security and enabling a more sustainable future.
The board was updated on Adnoc’s record-breaking initial public offerings (IPOs) and the company’s first investments outside the UAE in 2023. The board mandated Adnoc to prioritise transformational growth, partnerships and international opportunities to future-proof and drive value for Abu Dhabi and the UAE. In December, Adnoc announced that it has entered into a sale and purchase agreement for the acquisition of OCI’s entire majority shareholding in Fertiglobe. This supports the company’s ambitious chemicals strategy and its plans to establish a global growth platform for low-carbon ammonia, a key lower-carbon fuel and hydrogen carrier that is expected to play an important role in the energy transition.
The board was briefed on the steps that Adnoc has taken in support of its industry-leading Net Zero by 2045 target and directed the company to deploy leading edge technologies to accelerate decarbonisation, renewables growth, and lower-carbon solutions in support of the target. During the meeting, the board increased Adnoc’s budget allocation for landmark decarbonisation projects, technologies and lower-carbon solutions to $23 billion (Dhs84.4 billion).
