United Arab Emirates: New LNG Supply Agreement Signed with India

ADNOC Gas of the United Arab Emirates, part of Emirati energy giant ADNOC, has signed a ten-year agreement with Indian state-owned Gail India to supply half a million metric tons of liquefied natural gas (LNG) per year. Implementation of the agreement will begin in 2026. Strategic cooperation agreements between the United Arab Emirates and India were reached during the September 2024 visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, President of the Emirates, Crown Prince of Abu Dhabi. Earlier, on the margins of the September summit between the President of the United Arab Emirates and Indian Prime Minister Narendra Modi, an agreement was signed between ADNOC and India’s state-owned Indian Oil Corporation (IOCL) for the annual supply of one million tons of LNG over the next 15 years.

Under the agreement between ADNOC Gas and Gail India, liquefied natural gas will be supplied to India from the Das Island LNG liquefaction plant, which has an annual production capacity of 6 million tons of LNG. As stated by ADNOC in a press release, Das Island is the third “long-lived” and still productive natural gas liquefaction plant in the world. Since operations began in 1977, more than 3500 LNG shipments have been sent to customers around the world. In 2023, energy-hungry India was the fourth largest importer of Emirati LNG in the world. To achieve carbon neutrality, the New Delhi government aims to increase the share of natural gas in the total primary energy mix of the country, which still consumes a lot of fossil coal, to 15% by 2030 from the current roughly 6%.

“Green energy and the fight against climate change will be central themes of the XVII Verona Economic Forum, organized by Conoscere Eurasia Association,which will take place on December 5-6 in the United Arab Emirates.