Adnoc Gas of Abu Dhabi in the UAE signs 10-year LNG supply agreement with main Indian gas company GAIL
Adnoc Gas, the natural gas and LNG producer in Abu Dhabi in the United Arab Emirates, has signed a 10-year supply agreement with GAIL India, the Indian pipeline gas and city-gas player whose facilities include the Dabhol LNG import terminal south of Mumbai.
Under terms of the deal, Adnoc Gas said it would supply GAIL with 500,000 tonnes per annum of LNG.
The latest Adnoc Gas agreement for LNG volumes follows similar deals signed with Japan Petroleum Exploration, France’s TotalEnergies, Indian Oil Corp. and PetroChina International.
Adnoc Gas, which was spun-off in March 2023 from Abu Dhabi National Oil Co. (ADNOC) to become a separate company, is estimated to have the seventh-largest gas reserves globally.
Step forward
“This long-term LNG supply agreement with GAIL India marks a significant step forward in our commitment to continue providing reliable and sustainable energy solutions to our partners and customers around the world,” said Ahmed Mohamed Alebri, Chief Executive of Adnoc Gas.
“India continues to be a key market for Adnoc Gas and this latest supply agreement underscores our ongoing dedication to fostering long-term partnerships,” added Alebri.
The main Adnoc Gas LNG operation is the the Das Island plant in Abu Dhabi with three liquefaction Trains and 6 MTPA of output.
The Das Island facility has operated since 1977 and was the first export plant established in the Arabian Gulf.
“Adnoc Gas continues to leverage opportunities arising from ADNOC’s integrated gas masterplan, which links every part of the gas value chain in the UAE,” said the company.
The ADNOC Group is leading the developments for the UAE that includes the new low-carbon Ruwais LNG export project currently under development in Al Ruwais Industrial City in Abu Dhabi.
Al Ruwais project
When completed, Al Ruwais will have two liquefaction Trains each with capacity of 4.8 MTPA for a total of 9.6 MTPA.
GAIL is a leading natural gas company in West Asia with a presence in India’s gas trading, transmission, city-gas and other sectors including petrochemicals.
The New Delhi-based company currently has a 75 percent share of the gas transmission network.
Its pipeline assets are 14,490 kilometres (9,000 miles) in length and GAIL makes about 50 percent of the country’s domestic natural gas sales.
GAIL has six subsidiaries including GAIL Global USA Inc., which looks after its Cove Point LNG interests in the state of Maryland.
The company also runs an LNG trading business based in Singapore.
Other assets include a majority stake in Konkan LNG, the ownership company of India's Dabhol LNG import terminal, located in the West Coast Indian state of Maharashtra, south of Mumbai, and with 5 MTPA of capacity.
ADNOC Gas signs first major LNG agreement since being spun off from Abu Dhabi National Oil Co.
ADNOC Gas, the recently spun-off subsidiary of Abu Dhabi National Oil Co (ADNOC), has signed its first big deal since the floatation in the form of a three-year LNG supply agreement with French major TotalEnergies.
Following an initial public offering completed in March 2023, ADNOC Gas is now listed on the Abu Dhabi Securities Exchange as a separate company and is responsible for running Abu Dhabi’s world-scale LNG, natural gas processing and gas marketing operations in the United Arab Emirates.
The ADNOC Gas liquefaction plant on Das Island in the Arabian Gulf currently has export capacity of 6 million tonnes per annum and TotalEnergies is already a customer.
A statement said that the ADNOC Gas supply deal with TotalEnergies was with the French company’s Gas and Power unit and was for a period of three years, though the volumes involved were not immediately disclosed.
“Our new LNG supply agreement with TotalEnergies represents another significant milestone in our strategy to expand our global reach and strengthen our position,” said Ahmed Mohamed Alebri, Chief Executive of ADNOC Gas.
Commitment
“This agreement reflects our commitment to meeting the needs of our customers by offering supply security, price competitiveness,and flexibility,” Alberi added.
TotalEnergies has a long-standing presence in the UAE, having operated in the country for more than 80 years.
“We are pleased to have signed this three-year contract with our long-standing strategic partner,” said Thomas Maurisse, Senior Vice President LNG at TotalEnergies.
“These additional volumes will strengthen our global LNG portfolio and our ability to supply the growing Asian markets,” Maurisse added.
The three-year contract is expected to commence in 2023 and will run through 2025.
The ADNOC Gas IPO followed the sale of 5 percent of its shares for around $2.5 billion and the company is now listed on the Abu Dhabi Securities Exchange.
In addition to operating the Das Island LNG plant ADNOC Gas now independently runs eight processing sites, both onshore and offshore, and has a pipeline network of over 3,250 kilometres (2,020 miles) in length in the region.
Existing joint venture partners in the company’s LNG plant include Japan’s Mitsui & Co and UK major BP, as well as TotalEnergies.
TotalEnergies is also a gas-processing partner of ADNOC Gas and Shell and Thailand’s PTT Exploration and Production have similar joint venture partnerships with the company.
UAE energy company ADNOC to proceed with IPO offering minority stake in gas processing and LNG
Abu Dhabi National Oil Company (ADNOC) is proceeding with its plans to offer a minority stake in new subsidiary ADNOC Gas, which consolidates the emirate’s gas processing and LNG operations, through an initial public offering on the Abu Dhabi Securities Exchange in 2023.
