UAE Signs $2.5 Billion LNG Deal With India for 10 Years

The United Arab Emirates (UAE) has announced a major liquified natural gas (LNG) supply agreement with a state-owned Indian company, valued at over $2.5 billion.

The deal was signed between ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company, and Hindustan Petroleum Corporation Limited (HPCL). Under the agreement, ADNOC Gas will supply 500,000 tonnes of LNG annually for a period of 10 years.

ADNOC Gas said this agreement increases the total value of LNG contracts it supports and operates to more than $20 billion. With this deal, India will become the UAE’s largest natural gas customer.

According to the company, starting from 2029, Indian firms will account for just over 20 percent of ADNOC Gas’s annual production capacity of 15.6 million tonnes.

The LNG agreement was finalised during the visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to New Delhi, where he held talks with Indian Prime Minister Narendra Modi.

In a joint statement, both leaders welcomed the strong growth in bilateral trade since the 2022 Comprehensive Economic Partnership Agreement (CEPA). They also committed to doubling trade between the two countries to $200 billion by 2032.

India and the UAE further agreed to strengthen cooperation in defence and security. This includes collaboration in special operations, military interoperability, cyber security, and counter-terrorism, according to a statement from the Indian Prime Minister’s Office.