New Delhi, 29th January 2024: GAIL (India) Limited, India’s largest Natural Gas company, has successfully concluded a long-term LNG purchase agreement for purchase of around 0.5 MMTPA LNG from ADNOC Gas. This is pursuant to an MoU dated 30.10.2022 between GAIL and Abu Dhabi National Oil Company (ADNOC) P.J.S.C wherein Parties agreed that, in potential areas of collaboration both parties shall explore opportunities including purchase of LNG by GAIL from ADNOC for a tenure ranging from short term to medium and long-term. This significant development between GAIL and ADNOC will reinforce the robust cultural and economic bonds between India and the United Arab Emirates (UAE).
Under this agreement, the deliveries will commence from 2026 onwards for a duration of 10 years, across India. This arrangement is believed to further aid in India’s rising energy security requirements and, simultaneously, also fuel GAIL’s strategic growth objectives to cater to its downstream customers in the rapidly evolving Natural Gas landscape of the country.
Shri. Sandeep Kumar Gupta, Chairman & Managing Director, GAIL (India) Limited said on this long-term LNG deal that this long-term LNG deal with ADNOC by GAIL will contribute to bridging gap in India’s demand and supply of natural gas and will open more avenues of strategic partnership between GAIL and ADNOC in other areas of energy domain.
Underlining the broader impact of the agreement, Shri Sanjay Kumar, Director (Marketing), GAIL stated that this long-term LNG transaction by GAIL will help India in moving towards Government of India’s objective of enhancing share of natural gas in India’s energy basket to 15%. Further, this deal will also help GAIL to augment its significantly large LNG portfolio to serve its diverse consumer profile.
GAIL, headquartered in New Delhi, is India’s largest natural gas company, with a diversified interest across natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P etc. It owns and operates a network of over 16,000 km of natural gas pipelines spread across the country along with concurrently working on enhancing the spread further. GAIL commands around 70% market share in gas transmission and has a gas trading share of over 50% in India.
The long-term LNG purchase agreement with ADNOC Gas is anticipated to fortify India’s energy security, foster economic collaboration, and propel both GAIL and ADNOC into new realms of strategic partnership.
About GAIL (India) Limited:
GAIL (India) Limited, a Maharatna PSU, is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P, etc. It owns and operates a network of 16,080 km of natural gas pipelines spread across the length and breadth of the country. It is also working concurrently on the execution of multiple pipeline projects to further enhance the spread. GAIL commands around 70% market share in gas transmission and has a Gas trading share of over 50% in India. GAIL and its Subsidiaries / JVs also have a formidable market share in City Gas Distribution. In the Liquefied Natural Gas (LNG) market, GAIL has a significantly large portfolio. GAIL is also expanding its presence in renewable energy like Solar, Wind and Biofuel.
For more information about GAIL: gailonline.com
About ADNOC Gas:
ADNOC Gas, listed on the ADX (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), is a world-class, large-scale integrated gas processing company operating across the gas value chain, from receipt of raw gas feedstock from ADNOC through large, long-life operations for gas processing and fractionation to the sale of products to domestic and international customers. ADNOC Gas supplies approximately 60% of the UAE’s sales gas needs and supplies end-customers in over 20 countries. To find out more, visit: www.adnocgas.ae .
