India-based Hindustan Petroleum Corporation (HPCL) has entered into a heads of agreement (HOA) with an ADNOC Gas subsidiary for liquefied natural gas (LNG).
HPCL’s deal with the Abu Dhabi Gas Liquefaction Company (ALNG) will see the procurement of 500,000 tonnes per annum (tpa) of LNG over a period of ten years.
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This strategic move is aimed at bolstering India’s energy security and facilitating a transition to cleaner energy sources.
HPCL is set to receive LNG at the Chhara LNG Terminal in the Indian state of Gujarat.
This supply will cater to the requirements of the company’s City Gas Distribution Network, refineries and for the purpose of marketing to downstream customers.
By diversifying its LNG portfolio with long and short-term contracts, HPCL aims to provide competitive prices to its customers.
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By GlobalDataADNOC Gas, which meets around 60% of the United Arab Emirates’ (UAE) sales gas requirements, has a presence in more than 20 countries.
The deal with HPCL highlights the company’s growing global reach, especially in the high-demand Asian LNG market. This follows recent deals with Indian Oil Corporation and GAIL India.
ADNOC Gas CEO Fatema Al Nuaimi said: “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.
“This milestone underscores ADNOC Gas’ ability to reliably meet rising global demand for LNG and support India’s ambition to increase natural gas to 15% of its primary energy mix by 2030.”
The LNG for this contract will be sourced from ADNOC Gas’ Das Island facility, with a production capacity of six million tonnes per annum.
Das Island has delivered more than 3,500 LNG cargoes globally.
Last month, ADNOC Gas unveiled a three-year LNG supply agreement with Germany’s SEFE, valued at around $400m (Dh1.47bn).
