GAIL (India) has entered into a 10-year sales and purchase agreement with ADNOC Gas to deliver up to 0.52 million metric tonnes per annum of liquified natural gas starting in 2026. This marks the first sales and purchase agreement between ADNOC Gas and an Indian buyer. The LNG will be delivered in six cargoes per year from ADNOC Gas’ Das Island natural gas facility, which boasts a processing capacity of 6.0 MMTPA. This facility is the third longest established LNG plant currently in operation globally.
Sanjay Kumar, Director (Marketing) at GAIL, highlighted the increasing demand for LNG in India to meet the rising natural gas demand in various sectors. GAIL plans to expand its term LNG portfolio to cater to the growing demand, with the agreement with ADNFC Gas playing a key role in this expansion. Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC Gas, emphasized the company’s commitment to offering reliable and responsible global natural gas solutions and capturing growth opportunities in gas demand, particularly in India.
India, the fourth-largest importer of LNG globally in 2023, aims to increase the share of natural gas in the total primary energy mix to 15 percent by 2030, up from 6 percent currently. The country’s LNG regasification infrastructure has significantly improved, nearly doubling in capacity in the past year from 21 MMTPA in 2014. GAIL, a leading natural gas transmission and distribution company in India, operates gas transmission and distribution pipelines, processing and petrochemical plants, and has interests in upstream oil and gas blocks and LNG regasification terminals in the country.
The Asia-Pacific region, including India, is expected to drive the growth in global LNG demand over the next decade, with a projected 15 percent increase in demand driven by industrial coal-to-gas switching in China and the rising use of LNG in power generation across Southern and Southeast Asia. ADNOC Gas’ strategy involves more than doubling its LNG production capacity to meet the growing demand for lower carbon intensity products. The agreement with GAIL further solidifies ADNOC Gas’ position as a preferred partner for energy solutions in India.
The partnership between GAIL and ADNOC Gas is significant in supporting India’s ambition to increase the use of natural gas in its energy mix and meet the growing demand for LNG across various sectors. As global LNG demand continues to rise, driven by factors such as coal-to-gas switching and the adoption of LNG for power generation, the agreement reflects both companies’ commitment to capturing a share of the expanding market.
In conclusion, the sales and purchase agreement between GAIL and ADNOC Gas represents a step towards meeting the rising demand for LNG in India and the Asia-Pacific region. With India aiming to increase the share of natural gas in its energy mix, the partnership between the two companies will play a crucial role in supporting this goal. As global LNG demand continues to grow, driven by shifts towards cleaner energy sources, the agreement positions GAIL and ADNOC Gas for success in the expanding LNG market.
