Indian state-owned natural gas transmission and distribution company Gail has signed a 10-year sales and purchase agreement under which ADNOC Gas will supply it with up to 520,000 tonnes per year (tpy) of LNG starting in 2026, Gail announced on Thursday.
The LNG will be sourced from ADNOC Gas’s Das Island natural gas facility and will be delivered on the basis of six cargoes per year. The deal is ADNOC’s first such sales and purchase agreement with an Indian buyer.
“India is witnessing a growing demand for LNG to meet 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,” said Sanjay Kumar, director of marketing for Gail.
In 2023, India was the world’s fourth-largest importer of LNG, and imports are expected to increase over the next decade as the country aims to increase the share of natural gas in its primary energy mix to 15% by 2030, from about 6% today.