Adnoc Gas, a major unit of Abu National Oil Company (Adnoc) and its subsidiaries today (January 19) announced the signing of a sales and purchase agreement valued at between $2.5 billion - $3 billion for a period of 10 years with Hindustan Petroleum Corporation Limited (HPCL).

The agreement was announced during the working visit to India by UAE President HH Sheikh Mohamed bin Zayed Al Nahyan, where he met the Indian Prime Minister Narendra Modi.

Sheikh Mohamed and Modi both witnessed the Adnoc-HPCL agreement along with the exchange of a number of agreements, memoranda of understanding, and letters of intent aimed at strengthening and advancing co-operation between the two countries.

The sales and purchase agreement was exchanged by Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and Hardeep Singh Puri, Minister of Petroleum and Natural Gas of India during the cermony.

The other exchanged documents at the meeting included:

•Letter of Intent on a Strategic Defence Partnership, exchanged by Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs, and Dr Subrahmanyam Jaishankar, Minister of External Affairs of India.

•Letter of Intent between the UAE Space Agency and the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to launch a joint initiative to enable space industry development and commercial collaboration. It was exchanged by Reem bint Ebrahim Al Hashimy, Minister of State for International Cooperation, and Vikram Misri, Foreign Secretary.

•MoU on Food Safety and Technical Requirements by Reem bint Ebrahim and Misri.

• Letter of Intent on Investment Co-operation between the UAE Ministry of Investment and the Government of Gujarat in the Republic of India regarding the development of Dholera Special Investment Region. The document was exchanged by Saeed bin Mubarak Al Hajeri, Minister of State, and Misri.

During the meeting, Dr Al Jaber and Vikas Kaushal, Chairman and Managing Director of HPCL exchanged the signed contract, reiterating the importance of the growing relationship between Adnoc, its partners and customers in India.

Speaking on the occasion, Adnoc Gas CEO Fatema Al Nuaimi said: "We are pleased to sign this long-term LNG supply agreement with Hindustan Petroleum Corporation which reflects the strong and growing energy partnership between the UAE and India."

"This agreement underscores Adnoc Gas’ commitment to delivering reliable LNG to meet global demand, while supporting India’s ambition to increase natural gas to 15% of its energy mix by 2030," she stated.

This agreement converts a previously signed Heads of Agreement between the two companies into a long-term SPA and is valued at approximately $2.5 - 3 billion over its duration, for the export of 0.5 million tonnes per annum (mtpa) of liquefied natural gas (LNG). 

The milestone agreement represents a further step in strengthening the strategic partnership between the UAE and India, while reinforcing Adnoc Gas’ role as a reliable and trusted supplier of LNG to Asia’s fast-growing markets.

It now brings the total value of contracts being supported and operated by Adnoc Gas to over $20 billion. India is now the UAE’s largest customer and a very important part of Adnoc Gas’ LNG strategy. The company’s growth is tied to the continued success of India.

By 2029 Adnoc Gas will be the operator for 15.6 MTPA of LNG and of that 3.2MTPA is contracted to Indian energy companies including HPCL. 

This agreement will be supplied from Adnoc Gas’ Das Island liquefaction facility, which has a production capacity of up to 6 mtpa and ranks among the world’s longest-operating LNG plants. 

Since commencing operations, Das Island has delivered more than 3,500 LNG cargoes globally, demonstrating its strong operational performance and long-standing reliability.

The Hindustan Petroleum agreement aligns with Adnoc Gas’ strategy to broaden its customer base and expand its presence in India and in key growth markets across Asia. 

Over the past three years, the Company has secured a series of long-term LNG agreements ranging from 0.4 to 1.2 mtpa, with contract durations of up to 14 years. These contracts further reinforce Adnoc Gas’ position as a leading supplier of reliable, lower-carbon LNG to Asia’s rapidly growing energy markets.-TradeArabia News Service