Under the SPA, HPCL will receive 0.5 million tonnes per annum (mtpa) at its 5 mtpa Chhara LNG import terminal in Gujarat, which launched commercial operations last year.
UAE’s Adnoc Gas noted in a statement that 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.
“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,” the company said.
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 said.
By 2029, Adnoc Gas will be the operator for 15.6 mtpa of LNG, and of that, 3.2 mtpa is contracted to Indian energy companies, including HPCL, it said.
This agreement will be supplied from Adnoc Gas’ Das Island liquefaction facility, which has a production capacity of up to 6 mtpa.
In 2024, Adnoc announced the final investment decision on its Ruwais project and the EPC award to the joint venture led by Technip Energies.
The LNG project will more than double Adnoc’s existing UAE LNG production capacity to around 15 mtpa, as the company builds its international LNG portfolio.
Meeting gas needs in India
HPCL said in a separate statement that the LNG supplies under this agreement will support the company in meeting the requirements of its refineries, city gas distribution (CGD) network, and gas demand across key sectors, such as fertilizers, power, and petrochemicals.
“This partnership will further strengthen HPCL’s position as a reliable supplier of natural gas, complementing its portfolio of other petroleum products, to meet the nation’s growing and evolving energy needs,” the company said.
This strategic partnership aligns HPCL with India’s aspiration of increasing the share of gas in its energy basket.
“Such long-term contracts play a vital role in ensuring reliability, affordability, and supply security amidst a highly volatile geo-political and evolving global energy landscape,” HPCL said.
