Public Sector Giant GAIL India signed long term LNG deal with UAE’s ADNOC Gas

by Psu Connect
Date: 30-01-24

GAIL India Ltd has underwent a long-term agreement to purchase around 0.5 million mt/year of LNG from the UAE’s ADNOC Gas, from 2026 onwards for around 10 years period.

Public Sector Giant GAIL India signed long term LNG deal with UAE’s ADNOC Gas

The state-owned company has significantly concluded a long-term LNG purchase agreement for the intake of around 0.5 million tonnes per annum [MTPA] LNG from ADNOC Gas. This agreement has been followed with respect to the signing of MoU on 30 October 2022 in between GAIL and ADNOC P.J.S.C which was culminated with the potential sharing and collaborating commitments to be provided for the exploring opportunities of both the parties in the field of fuels and energy, including the purchase of LNG for a short and medium term, respectively.

The significant collaboration will be helpful to boost the strategic relationship between both the corresponding parties and will propel long-lasting growth in the energy sectors. The supply of gas deliveries will commence in 2026 and would be continued for a long period of 10 years. Meanwhile, the broader impact of the agreement is surely beneficial for the large LNG portfolio for serving the diversified consumer profile.

The respective agreement is supposed to include the potential optimization of LNG trading activities, the review of joint equity investments in renewable and the monitoring of greenhouse gases for LNG cargoes. ADNOC is a reliable and accessible provider of energy products to consumers globally. Moreover, the company is considered to be the first LNG producer in the Middle East while, GAIL is one of India’s largest natural gas companies which is responsible for the exploration and production, processing, transmission, and distribution of petroleum and gasoline services to the Pan India diaspora.