GAIL and ADNOC Gas Sign 10-Year LNG Agreement for India
Abu Dhabi, UAE – GAIL (India) has entered into a 10-year sales and purchase agreement with ADNOC Gas to receive up to 0.52 million metric tonnes per annum (MMTPA) of liquified natural gas (LNG) starting in 2026. This marks ADNOC Gas’ first agreement with an Indian buyer.
The LNG will be delivered in six shipments annually from ADNOC Gas’ Das Island facility, which is one of the oldest LNG plants still in operation globally, with a processing capacity of 6.0 MMTPA.
Sanjay Kumar, Director of Marketing at GAIL, highlighted India’s growing demand for LNG to meet its increasing natural gas needs. He stated that this agreement is a significant step for GAIL to expand its LNG portfolio and better serve its diverse consumer base.
Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC Gas, emphasized the agreement’s role in strengthening ADNOC Gas’ position as a reliable global natural gas provider. He noted the expected 15% rise in global LNG demand over the next decade, driven by industrial shifts in China and increased LNG use in Southern and Southeast Asia.
India, the fourth-largest LNG importer in 2023, aims to increase natural gas’s share in its energy mix to 15% by 2030. GAIL, a leading natural gas company in India, continues to expand its infrastructure to meet this growing demand.
Doubts Revealed
GAIL -: GAIL stands for Gas Authority of India Limited. It is a government-owned company in India that deals with natural gas processing and distribution.
ADNOC Gas -: ADNOC Gas is a company from the United Arab Emirates that produces and sells natural gas. ADNOC stands for Abu Dhabi National Oil Company.
LNG -: LNG stands for Liquefied Natural Gas. It is natural gas that has been cooled down to liquid form for easy storage and transport.
MMTPA -: MMTPA stands for Million Metric Tonnes Per Annum. It is a unit of measurement used to describe the amount of LNG that will be delivered each year.
Das Island -: Das Island is a place in the United Arab Emirates where natural gas is processed and turned into LNG. It is known for being one of the oldest facilities in the world for this purpose.
Sanjay Kumar -: Sanjay Kumar is a person who works for GAIL, the Indian gas company. He talks about how India’s need for LNG is growing.
Rashid Khalfan Al Mazrouei -: Rashid Khalfan Al Mazrouei is a person who works for ADNOC Gas. He mentions that the global demand for LNG is expected to increase by 15%.
Fourth-largest LNG importer -: This means that India is the fourth biggest country in the world in terms of buying LNG from other countries.
15% energy share by 2030 -: India wants to increase the use of natural gas so that it makes up 15% of the country’s total energy use by the year 2030.
