UAE and India Forge $2.5 Billion LNG Alliance for a Decade

Post by : Bianca Suleiman

The United Arab Emirates (UAE) has unveiled a significant liquefied natural gas (LNG) supply agreement with a government-owned Indian firm, worth over $2.5 billion.

This agreement was sealed between ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company, and Hindustan Petroleum Corporation Limited (HPCL). Under the terms, ADNOC Gas will deliver 500,000 tonnes of LNG each year for a decade.

ADNOC Gas highlighted that this arrangement boosts the overall value of the LNG contracts it manages to upwards of $20 billion, positioning India as the UAE's leading natural gas consumer.

As per company projections, by 2029, Indian enterprises will represent over 20 percent of ADNOC Gas's annual output capacity, which is set at 15.6 million tonnes.

This LNG agreement was concluded during UAE President Sheikh Mohamed bin Zayed Al Nahyan's visit to New Delhi, where he engaged with Indian Prime Minister Narendra Modi.

In a joint statement, both leaders acknowledged the impressive growth in bilateral trade following the 2022 Comprehensive Economic Partnership Agreement (CEPA) and vowed to increase trade to $200 billion by 2032.

Additionally, India and the UAE have committed to enhancing collaboration in defense and security, which encompasses cooperation on special operations, military interoperability, cyber security, and counter-terrorism, as noted by the Indian Prime Minister's Office.