ADNOC Gas Signs Long-Term LNG Supply Agreement Worth US$3 Billion With HPCL

ADNOC Gas plc has entered a ten-year liquefied natural gas supply deal with Hindustan Petroleum Corporation Limited worth between US$2.5 billion and US$3 billion. The LNG volumes will support India’s growing energy demand and align with India’s gas-focused energy plans. The agreement strengthens long-term ties between the UAE and India across the energy sector.

The contract converts an earlier Heads of Agreement into a binding sales and purchase agreement. Under the terms, ADNOC Gas will supply 0.5 million tonnes per annum of LNG to Hindustan Petroleum Corporation Limited. The value of the agreement, estimated between US$2.5 billion and US$3 billion, reflects current market conditions over the ten-year period.

The Hindustan Petroleum contract will be fulfilled from ADNOC Gas’ Das Island liquefaction facility. The plant has capacity of up to 6 million tonnes per annum and is among the longest-running LNG facilities worldwide. Since operations began, Das Island has shipped more than 3,500 LNG cargoes to international customers, highlighting consistent plant performance and long-term reliability.

By 2029, ADNOC Gas is expected to operate 15.6 million tonnes per annum of LNG capacity. Of that total, 3.2 million tonnes per annum is already contracted to Indian energy companies, including Hindustan Petroleum Corporation Limited. India is currently the UAE’s largest customer and is a central market in ADNOC Gas’ wider LNG strategy.

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Over the past three years, ADNOC Gas has signed several long-term LNG contracts in Asia. These range from 0.4 to 1.2 million tonnes per annum, with durations reaching up to 14 years. The deals support ADNOC Gas’ plan to expand its customer base in India and other key Asian growth markets for lower-carbon LNG.

The new agreement with Hindustan Petroleum Corporation Limited increases the total value of contracts supported and operated by ADNOC Gas to more than US$20 billion. The company’s expansion is closely linked to India’s economic development and rising gas demand. ADNOC Gas positions itself as a reliable LNG supplier to Asia’s fast-growing energy markets.

ADNOC Gas LNG agreement with India and leadership statements

During a visit to India by President His Highness Sheikh Mohamed bin Zayed Al Nahyan, the two sides highlighted closer energy cooperation. President His Highness Sheikh Mohamed bin Zayed Al Nahyan met Indian Prime Minister Narendra Modi during the visit. The contract exchange took place in that context, underlining the broader strategic relationship between the two countries.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of the Abu Dhabi National Oil Company, and Vikas Kaushal, Chairman and Managing Director of Hindustan Petroleum Corporation Limited, exchanged the signed agreement. This ceremony emphasised the importance of collaboration between ADNOC, its partners and customers in India across the LNG value chain.

Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, 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 percent of its energy mix by 2030."

The Hindustan Petroleum agreement supports India’s aim to raise natural gas to 15 percent of its energy mix by 2030, while helping diversify LNG supply into the country. It also supports ADNOC Gas’ stated strategy to grow its presence in India and other Asian markets, using stable long-term contracts backed by established LNG infrastructure in the UAE.

With inputs from WAM