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Adnoc Gas signed a 10-year sales and purchase agreement (SPA) with Indian state-owned natural gas company Gail, finalizing the preliminary agreement signed earlier this year, according to a press release (pdf). The agreement will see Adnoc Gas supply Gail with 0.52 mn metric tonnes of liquefied natural gas (LNG) a year, with deliveries to start in 2026. The LNG will be sourced from Adnoc Gas’ Das Island liquefaction facility, which operates with an annual production capacity of 6 mn metric tonnes of LNG.
Background: Adnoc Gas and Gail inked a heads of agreement in January for the supply of 500k tons of LNG. In 2022, the two companies signed an MoU to explore joint investments and potential LNG sale transactions between the two companies.
ICYMI- We will soon see Adnoc Gas finalizing more offtake agreements: The company is planning to reach “many more HOAs being converted into final [offtake] agreements,” CFO Peter Van Driel said earlier this week.
The agreement will help India ramp up its LNG portfolio: The country is looking to raise the share of natural gas in its energy mix from 6% to 15% by 2030. The agreement with Adnoc is “a crucial step in this direction, enabling Gail to augment its existing LNG portfolio to better serve its diverse consumer base,” Gail’s marketing director Sanjay Kumar said.
This is the latest in a series of offtake agreements signed by Adnoc Gas: The most recent was a 15-year SPA with Sefe Marketing & Trading Singapore for 1 mn tonnes of LNG from Adnoc’s Ruwais LNG project. Other signed offtake agreements include a 15-year agreement with China’s ENN Natural Gas to deliver 1 mn tons of LNG annually from Ruwais, along with another 15-year agreement with German energy giant Energie Baden-Württemberg to supply it with 0.6 mn tonnes of LNG per year. Adnoc also signed long-term LNG supply agreements to deliver 1.6 mn tonnes per year from the new plant, with 1 mn metric tonnes to Shell and 0.6 mn tons to Mitsui.
