Image by Benjamin Mossman via Unsplash
GAIL India Limited, India’s leading natural gas firm, has secured a decade-long Sales and Purchase Agreement (SPA) with ADNOC Gas, formalising an earlier Heads of Agreement to supply up to 0.52 million metric tonnes per year (mmtpa) of liquefied natural gas (LNG) starting in 2026, according to a report by Reuters.
The LNG will be sourced from ADNOC Gas’ Das Island liquefaction facility, which boasts an annual production capacity of 6.0 mmtpa and ranks among the longest-operating LNG facilities globally, with over 3,500 shipments sent worldwide since it began operations in 1977.
Rashid Khalfan Al Mazrouei, ADNOC Gas’ Senior Vice President of Marketing, commented on the agreement: “This agreement strengthens ADNOC Gas’ role as a reliable and responsible global natural gas provider and reflects our ambition to capture future growth opportunities in gas demand. It also reinforces our position as a preferred partner for energy solutions in India.”
Global demand for LNG is expected to rise by 15% over the coming decade, with industrial sectors in China turning to gas from coal and expanded use of LNG for electricity generation in South and Southeast Asia. ADNOC Gas is committed to expanding its LNG production capacity to capture a larger share of this increasing demand for lower-carbon products.
Sanjay Kumar, GAIL’s Director of Marketing, emphasised the importance of this agreement for India, saying, “India is witnessing a growing demand for LNG to meet its increasing natural gas demand in a diversified sectoral pattern. GAIL plans to significantly increase its term LNG portfolio in the coming years to meet this rising demand. This SPA with ADNOC Gas is a crucial step in this direction, enabling GAIL to augment its existing LNG portfolio to better serve its diverse consumer base.”
To fuel its growth in the global LNG market, ADNOC Gas has announced plans to acquire ADNOC’s 60% interest in the Ruwais LNG facility, projected to commence production in the second half of 2028. Ruwais LNG, with two trains capable of producing 4.8 mmtpa each, will become the first LNG plant in the Middle East and Africa powered by clean grid electricity, aiming to be among the world’s lowest-carbon LNG production sites. Advanced digital technologies, including AI, will be employed to enhance safety, reduce emissions, and optimise operations. When operational in 2029, ADNOC Gas’ LNG production capacity is expected to exceed 15 mmtpa, more than doubling current levels.
In 2023, India ranked as the world’s fourth-largest LNG importer and is projected to further increase imports in the coming decade. The country aims to raise natural gas’s share in its primary energy mix from the current 6% to 15% by 2030, while LNG regasification infrastructure has also expanded, doubling in capacity last year to 42 mmtpa from 21 mmtpa in 2014.
