GAIL (India) Ltd announced a landmark agreement to purchase up to 0.52 million tons per annum of liquefied natural gas (LNG) from ADNOC Gas, beginning in 2026. The deal marks the first sales and purchase agreement (SPA) between ADNOC Gas and an Indian buyer.
Details of the Agreement
The LNG will be delivered in six cargoes per year from ADNOC Gas’ Das Island natural gas facility, which boasts an LNG processing capacity of 6 million tonnes per annum.
Das Island is one of the longest-established LNG plants still in operation globally, underscoring the reliability of the supply.
Rising LNG Demand
Sanjay Kumar, Director of Marketing at GAIL, emphasized the growing demand for LNG in India across diverse sectors.
He stated, “India’s increasing natural gas requirements are driving our need for more LNG. This agreement with ADNOC Gas is a pivotal step in expanding GAIL’s LNG portfolio and strengthening our ability to serve a broader consumer base”.
Strategic Positioning
Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC Gas, highlighted that the agreement reinforces ADNOC Gas’ position as a reliable global supplier.
He added, “This deal reflects our ambition to capture future growth opportunities in gas demand, particularly in India, a key energy market”.
Global LNG Demand
Experts expect global LNG demand to rise by fifteen percent over the next decade. Industrial coal-to-gas switching in China and increased LNG use for power generation in Southern and Southeast Asia drive this growth.
ADNOC Gas aims to capitalize on this growth by more than doubling its LNG production capacity to meet the demand for lower-carbon energy products.
Growing LNG Imports
India, currently the fourth-largest importer of LNG globally, is preparing to increase its LNG imports further.
The country is targeting a rise in the share of natural gas in its primary energy mix to 15% by 2030, up from 6% today.
India’s LNG regasification infrastructure has expanded significantly. Its capacity has nearly doubled since 2014.
As reported by theweek.in, GAIL and ADNOC Gas have reached a strategic agreement. This highlights the growing collaboration between Indian and global energy companies. This will play a key role in meeting India’s future energy needs.
