GAIL Secures Landmark LNG Agreement with ADNOC Gas

GAIL (India) Ltd., a prominent Maharatna Public Sector Enterprise specializing in the transmission and distribution of natural gas, has announced a significant milestone with the signing of a 10-year Sales and Purchase Agreement (SPA) with ADNOC Gas. This deal marks the first collaboration of its kind between ADNOC Gas and an Indian entity.

As part of the agreement, GAIL is set to receive up to 0.52 million metric tonnes per annum (MMTPA) of liquefied natural gas (LNG), with deliveries scheduled to commence in 2026. The LNG will be transported in six cargoes annually from ADNOC’s Das Island facility, which boasts an impressive LNG processing capacity of 6.0 MMTPA. This facility is recognized as one of the longest-operating LNG plants globally, underscoring ADNOC Gas's capability to cater to international markets.

This strategic partnership aligns with GAIL’s initiative to enhance its LNG portfolio in response to India’s surging demand for natural gas across various sectors. Kumar, GAIL’s Director of Marketing, noted the increasing necessity for LNG in India's energy landscape, emphasizing the nation's ambition to diversify its natural gas consumption.

"India is experiencing a rising demand for LNG to satisfy its expanding natural gas needs across multiple sectors. This SPA with ADNOC Gas is a pivotal move towards augmenting GAIL's existing LNG portfolio," Kumar stated.

ADNOC Gas, led by Senior Vice President Rashid Khalfan Al Mazrouei, views this agreement as a strategic effort to solidify its status as a leading global gas supplier. Al Mazrouei highlighted the potential for increased global LNG demand, driven by factors such as industrial transitions from coal to gas in China and a growing reliance on LNG for power generation in Southern and Southeast Asia.

In 2023, India emerged as the fourth-largest LNG importer worldwide and anticipates substantial growth in its LNG imports over the next decade. The country aims to elevate the share of natural gas in its primary energy mix from the current 6 percent to 15 percent by 2030. Additionally, India has been expanding its LNG regasification infrastructure, effectively doubling its capacity in recent years, which supports the nation’s long-term energy objectives.

The agreement with ADNOC Gas not only reinforces GAIL’s position in the expanding LNG market but also plays a crucial role in supporting India’s energy transition towards a more sustainable future.