Blitz Bureau
INDIA has sourced more liquefied natural gas (LNG) from the United Arab Emirates with public sector oil giant Hindustan Petroleum Corporation Limited (HPCL), signing a 10-year supply agreement with state-owned ADNOC Gas as part of the deepening energy partnership between the two countries, reported IANS.
Under the terms of the agreement, ADNOC Gas will supply 500,000 metric tonnes per annum (mtpa) of LNG to HPCL, starting in 2026. The LNG will be sourced from ADNOC Gas’ Das Island liquefaction facility, which has a production capacity of 6 mtpa and is one of the world’s longest-operating LNG plants, having shipped over 3,500 cargoes globally since its inception in 1977.
HPCL will receive LNG at the recently commissioned Chhara LNG Terminal, Gujarat, to meet the demand of its refineries, City Gas Distribution Network and for marketing to downstream customers. This initiative further enables HPCL to build a diverse portfolio encompassing long and short-term LNG contracts, and also to secure LNG and meet the growing energy demand in the Indian market.
This agreement marks ADNOC Gas’ third LNG supply deal with an Indian energy company in the past 12 months, following contracts with Indian Oil Corporation (IOCL) and GAIL India. The UAE has emerged as a reliable energy partner for India, particularly as global LNG competition intensifies following disruptions like the Russia-Ukraine conflict. India’s growing energy ties with the UAE provide a counterbalance to its reliance on other suppliers and help navigate challenges like potential US tariffs on Indian goods due to its oil imports from Russia.
