GAIL (India) Limited has recently finalized a long-term agreement to procure approximately 0.5 million metric tonnes per annum (MMTPA) of liquefied natural gas (LNG) from ADNOC Gas. This development follows the memorandum of understanding (MoU) inked on October 30, 2022, solidifying the collaboration between GAIL and ADNOC.
GAIL (India) Limited, a Maharatna PSU, stands as one of the foremost natural gas enterprises in India, engaged in a spectrum of activities within the natural gas value chain. GAIL boasts a 70% market share and holds over 50% in gas trading in India. GAIL is making strides in renewable energy, venturing into solar, wind, and biofuel projects, while also maintaining a presence in the LNG market.
ADNOC Gas, being one of the globally renowned integrated gas processing companies, manages extensive operations across the gas value chain, processing raw gas from ADNOC, and delivering a diverse range of products to both domestic and international customers. Providing around 60% of the UAE’s sales gas requirements, ADNOC Gas serves end-customers in over 20 countries with large-scale, enduring gas processing and fractionation operations.
Commencing in 2026 and spanning a decade, this agreement entails deliveries across India, contributing to the nation’s burgeoning energy security needs. Simultaneously, it aligns with their strategic growth goals, positioning the company to effectively serve its downstream customers in India’s dynamic natural gas landscape.
Sandeep Kumar Gupta, Chairman & Managing Director of GAIL (India) Limited, emphasized the significance of the extended LNG partnership with ADNOC. He highlighted that this collaboration would play a pivotal role in narrowing the gap between India’s natural gas demand and supply. He expressed optimism about the deal fostering a broader and more extensive partnership between GAIL and ADNOC across various domains within the energy sector.
Sanjay Kumar, Director (Marketing) at GAIL, underscored the implications of the long-term LNG agreement. He pointed out that this transaction would play a crucial role in aligning with the Government of India’s objective of increasing the share of natural gas in the country’s energy mix to 15%. He highlighted the potential for this deal to empower their company in expanding its already substantial LNG portfolio, enhancing its capacity to cater to a diverse consumer base.
GAIL boasts a diversified portfolio that spans the entire value chain of natural gas. Its extensive involvement encompasses trading, transmission, LPG production and transmission, LNG re-gasification, petrochemicals, city gas, and exploration and production. With ownership and operation of an expansive network exceeding 16,000 km of natural gas pipelines across the nation, GAIL is actively expanding its reach.
The company commands approximately 70% of the market share in gas transmission and maintains a share of over 50% in gas trading within India. The LNG purchase agreement with ADNOC Gas is poised to strengthen India’s energy security, foster economic collaboration, and open up new avenues for partnership between GAIL and ADNOC.