Abu dhabi: ADNOC Gas plc and its subsidiaries announced the signing of a sales and purchase agreement with Hindustan Petroleum Corporation Limited (HPCL), valued between US$2.5 - US$3 billion for a decade-long period.

According to Emirates News Agency, the agreement was unveiled during a visit to India by President His Highness Sheikh Mohamed bin Zayed Al Nahyan, who met with Indian Prime Minister Narendra Modi. Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, alongside Vikas Kaushal, Chairman and Managing Director of HPCL, exchanged the signed contract, highlighting the growing ties between ADNOC and its Indian partners.

Fatema Al Nuaimi, CEO of ADNOC Gas, expressed satisfaction with the agreement, emphasizing its role in strengthening the energy partnership between the UAE and India. The agreement is set to supply 0.5 million tonnes per annum of liquefied natural gas (LNG) and aims to support India's goal of increasing natural gas in its energy mix to 15 percent by 2030.

The agreement, which converts a prior Heads of Agreement into a long-term Sales and Purchase Agreement, reinforces ADNOC Gas' position as a key LNG supplier to Asia. This deal contributes to ADNOC Gas' US$20 billion portfolio of contracts, with India as its largest customer.

By 2029, ADNOC Gas plans to operate 15.6 million tonnes per annum of LNG, with 3.2 million tonnes per annum contracted to Indian energy companies, including HPCL. The supply will originate from ADNOC Gas' Das Island facility, known for its production capacity and operational longevity.

This agreement aligns with ADNOC Gas' strategy to expand its presence in India and other Asian markets. Over the past three years, the company has secured multiple long-term LNG contracts, reinforcing its position as a reliable supplier in Asia's energy sector.