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.
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Indian gas tariff
March 27 (LNGJ) - India’s Petroleum and Natural Gas Regulatory Board has set the tariff for pipelines operated by Gas Authority of India (GAIL), which is also an LNG importer. The pipeline tariff has been set at 58.61 Indian rupees (US$0.71) effective from April.
GAIL (India) said the tariff applies to nine physically inter-connected natural gas pipelines, including several near LNG import terminals such as the Dahej Uran-Dabhol-Panvel Pipeline (DUPL-DPPL) and the Dabhol-Bangalore Pipeline (DBPL).
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Indian LNG imports drop 9.5 percent as increased cargo costs curb spot market participation by Asian nations
Indian imports of liquefied natural gas dropped by 9.5 percent in June, the 10th straight monthly decline, as LNG prices have increased in the spot market and curbed buying activity in Asia.
LNG deliveries in June to India’s network of six terminals amounted to 1.81 million tonnes, or 27 cargoes, compared with 2.00MT, or 30 shipments, in June 2021, according to data just published by Ministry of Petroleum and Natural Gas.
Shipments in May 2022 had come to 1.87MT compared with 1.94MT in May 2021.
The import total for the fiscal year so far amounted to 5.47MT in the April-to-June period, down 9.6 percent from the 6.05MT delivered in the same three months of 2021.
Costs jump
India’s June LNG shipments cost around $1.2 billion, or 9,586 crore Indian rupees, compared with about $800 million, or 6,391 crore rupees, in June 2021.
The LNG imports from April to June cost $3.4 billion, or 27,163 crore rupees, compared with $2.4Bln, or 19,174 crore rupees, in the prior-year period.
The nation’s crude oil imports increased by 20 percent and 17 percent during June 2022 and April-June 2022 respectively compared with the corresponding period of the previous fiscal year.
This Ministry figures also showed that net imports of both oil and gas in June 2022 cost $13.0Bln, or 103,858 crore rupees, compared with $7.3Bln in June 2021.
LNG deliveries to Indian terminals come mainly from Qatar, which provides over one-third of volumes, as well as West Africa, the US, Asian nations, Australia, Russia and the spot market.
While LNG imports have declined every month since September 2021 more domestic pipeline natural gas has been produced offshore the East Coast of India in the Bay of Bengal.
India’s domestic natural gas production for the month of June was 2.81 billion cubic metres which was higher by 1.3 percent compared with the 2.77 Bcm of output in June 2021.
The Ministry data showed that production of natural gas for the first three months of the fiscal year came to 8.55 Bcm, an increase of 4.7 percent from the total of 8.17 Bcm of output logged in the April-to-June period of 2021.
The Krishna-Godavari Basin of Eastern India has seen production increases and output will rise further in the future from several projects involving the UK major BP in partnership with Indian group Reliance Industries, with additional output added by Oil and Natural Gas Corp. of India.
The latest Ministry data also gave average capacity utilization rates for the six operating LNG terminals during the previous month of May 2022.
The total capacity of the six terminals amounts to 42.7 million tonnes per annum of LNG.
However, the terminals are not always in the right places where natural gas demand is increasing and that’s why a wider spread of regasification facilities is still needed on the East Coast.
Terminal throughput
The largest Indian terminal at Dahej, located north of Mumbai and operated by Petronet LNG, has capacity of 17.5 MTPA and the latest utilisation rate from the Ministry for May was 83.8 percent compared with 87.5 percent utilization in the previous month.
At the Hazira facility, operated by Shell India, the utilisation rate dropped to 36.1 percent for 5.2 MTPA from 47.2 percent in April, while the West Coast terminal at Mundra also saw lower usage of 15.9 percent for its 5 MTPA of capacity, down from 19.3 percent in April.
The throughput for Gas Authority of India (GAIL) at the Dabhol terminal, located south of Mumbai, tumbled to 42.7 percent for 5 MTPA of capacity from 85.1 percent in April.
At the Kochi facility in the southwest state of Kerala usage was 20.1 percent for 5 MTPA compared with 20.7 percent the previous month.
At Kamarajar (Ennore), the only East Coast terminal, May usage was 12.0 percent for the facility with 5 MTPA of capacity, down from 13.0 percent in April.
The current average consumption levels of natural gas in India are in the following sectors: fertilizers (30 percent), power (15 percent), city-gas distribution (20 percent), refineries (9 percent), petrochemicals (5 percent) and others (21 percent).
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