GAIL Inks a 10-year LNG Agreement with ADNOC Gas

GAIL, a state-owned gas company, has entered a 10-year agreement with UAE’s ADNOC Gas to purchase up to 0.52 million metric tonnes of liquefied natural gas (LNG) per year. Deliveries are scheduled to begin in 2026, with cargoes sourced from ADNOC Gas’s Das Island natural gas facility, which has a production capacity of 6 million metric tonnes per year. This collaboration aligns with India’s growing need for natural gas across various sectors.

Sanjay Kumar, GAIL’s Director of Marketing, emphasized the strategic importance of this agreement, noting that India’s LNG demand is on the rise. GAIL aims to expand its long-term LNG portfolio significantly to support this increasing demand and further secure energy resources. India currently ranks as the fourth-largest LNG importer globally, reflecting the country's strong energy appetite. To enhance its energy mix, the Indian government has set an ambitious target to increase natural gas’s share in the primary energy mix from the current 6% to 15% by 2030. This target reflects India's commitment to adopting cleaner energy sources and reducing reliance on coal.

Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC Gas, expressed optimism regarding this deal. According to Al Mazrouei, the partnership represents ADNOC Gas’s commitment to meeting the expanding global demand for LNG, particularly in high-growth markets like India. He highlighted the company's intent to capture new growth opportunities as LNG demand continues to rise globally.

This agreement strengthens ties between India and the UAE in the energy sector, positioning GAIL to cater to India’s evolving energy requirements while supporting the country’s energy transition goals. As global demand for cleaner energy alternatives grows, strategic partnerships like this one underscore the role of LNG as a transitional fuel in the shift towards a low-carbon future.

GAIL Limited is a state-owned Indian energy company primarily focused on the trade, transmission, and distribution of natural gas. The company also diversifies its operations into areas such as exploration and production, renewable energy including solar and wind power, telecom and telemetry services, and electricity generation.

The Abu Dhabi National Oil Company, or ADNOC, is the state-owned oil corporation of the United Arab Emirates. Established in 1971, ADNOC is a leading and diversified energy group fully owned by the Abu Dhabi Government. With a network of integrated businesses spanning the entire energy value chain, ADNOC plays a key role in meeting the dynamic demands of the global energy market responsibly. Already among the lowest carbon intensity oil and gas producers worldwide, ADNOC is taking bold actions to make today’s energy cleaner while also investing in the clean energy solutions of the future. This approach further solidifies ADNOC’s position as a dependable and responsible global energy supplier.