Gujarat Energy has signed a 10-year liquefied natural gas supply agreement with Abu Dhabi National Oil Company, or ADNOC, expanding the Abu Dhabi-based energy group’s presence in India’s LNG market, according to a company announcement reported by Reuters on November 6.
The announcement did not disclose the contracted LNG volume, financial value, pricing terms or the expected start date of deliveries. The agreement nevertheless adds to a growing set of long-term LNG arrangements linking ADNOC with Indian energy companies.
ADNOC Gas signed a $3 billion agreement with Hindustan Petroleum Corporation in January to supply 0.5 million metric tonnes of LNG annually for 10 years. That contract took the value of ADNOC’s contracts with India to more than $20 billion, Reuters reported.
LNG is natural gas that has been cooled to a liquid state for transportation, allowing it to be shipped by sea and then converted back into gas for use. Long-term supply agreements are used by energy companies to secure future access to imported gas, although the supplied report does not specify how Gujarat Energy will use the contracted volumes or which facilities will receive them.
The new agreement places Gujarat Energy alongside Hindustan Petroleum as an Indian counterparty in ADNOC’s expanding LNG business. The announcement also comes as ADNOC builds on its commercial relationships in one of Asia’s key LNG markets.
Further details on the agreement’s quantity, delivery schedule, contract value and operational arrangements were not included in the information available for this report.
