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State-run HPCL has signed a 10-year deal with ADNOC (Abu Dhabi National Oil Company) for sourcing LNG.
The deets: the agreement, valued at around $2.5-3 billion, secures LNG supplies of 0.5 million tonnes per annum for HPCL.
In practical terms, 0.5 million tonnes of LNG can support the electricity and gas needs of a medium-sized Indian state with 3-4 million households, or keep a major industrial cluster running for a year.
The gas will be delivered to HPCL’s Chhara LNG terminal in Gujara. It will be sourced from ADNOC Gas’ Das Island liquefaction facility, one of the world’s longest-operating LNG plants.
The significance: this added supply will support the company’s refineries and City Gas Distribution network. It will also help meet demand across key sectors such as fertilisers, power, petrochemicals, and other industries.
Backdrop: UAE is India’s second-largest supplier of LNG. This agreement comes as India and the UAE deepen economic ties and sign multiple cooperation deals.
Both countries have also set a target to double bilateral trade to $200 billion by 2032, spanning sectors such as defence, energy, and space exploration.
Consultancy.in
