GAIL (India) strikes major LNG deal with ADNOC Gas to boost India’s energy security

GAIL (India) Limited, the largest natural gas company in India, has successfully concluded a significant long-term liquefied natural gas (LNG) purchase agreement with ADNOC Gas. This agreement, part of a Memorandum of Understanding (MoU) dated October 30, 2022, between GAIL and the Abu Dhabi National Oil Company (ADNOC) P.J.S.C, is a pivotal development in reinforcing the cultural and economic bonds between India and the United Arab Emirates (UAE).

The deliveries under this agreement are set to commence from 2026 onwards for a duration of 10 years across India. This strategic move is expected to play a crucial role in meeting India’s growing energy security needs while fueling GAIL’s strategic growth objectives in the country’s evolving natural gas landscape.

Sandeep Kumar Gupta, Chairman & Managing Director of GAIL, emphasized the importance of this development: “This long-term LNG deal with ADNOC by GAIL will contribute to bridging the gap in India’s demand and supply of natural gas and will open more avenues of strategic partnership between GAIL and ADNOC in other areas of the energy domain.”

Sanjay Kumar, Director (Marketing) at GAIL, highlighted the broader impact of the agreement: “This long-term LNG transaction by GAIL will help India in moving towards the Government of India’s objective of enhancing the share of natural gas in India’s energy basket to 15%.” He also noted that the deal would augment GAIL’s large LNG portfolio, enabling the company to serve a diverse consumer profile more effectively.

Headquartered in New Delhi, GAIL is not only India’s largest natural gas company but also a leader in the natural gas value chain, including trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P, etc. GAIL owns and operates over 16,000 km of natural gas pipelines across India, holding approximately 70% market share in gas transmission and over 50% in gas trading.

This long-term LNG purchase agreement with ADNOC Gas is anticipated to enhance India’s energy security, foster economic collaboration, and open new realms of strategic partnership for both GAIL and ADNOC, marking a milestone in the energy sector.

The long-term LNG purchase agreement between GAIL (India) Limited and ADNOC Gas represents a significant step forward in India’s energy strategy. It not only addresses the country’s increasing demand for natural gas but also demonstrates the growing importance of international collaborations in the energy sector. This agreement is likely to have a far-reaching impact on India’s energy infrastructure, contributing to the nation’s goal of a more diversified and secure energy portfolio.