UAE signs USD 2.5 billion LNG supply deal with Hindustan Petroleum

The United Arab Emirates announced on Monday a liquefied natural gas (LNG) supply deal with a state-run Indian company valued at more than USD 2.5 billion.

The agreement was signed between ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company, and Hindustan Petroleum Corporation Ltd. Under the contract, ADNOC Gas will supply 0.5 million tonnes of LNG annually to India over a 10-year period, the Emirati company said.

ADNOC Gas said the deal brings the total value of contracts it supports and operates to more than USD 20 billion and will make India its largest natural gas customer.

From 2029, Indian companies will account for just over one-fifth of ADNOC Gas’s annual production capacity of 15.6 million tonnes, according to the company.

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

In a joint statement, the two leaders highlighted the growth in bilateral trade since the signing of a trade agreement in 2022 and committed to doubling trade to USD 200 billion by 2032.

In a separate statement, Modi’s office said the two countries also agreed to work towards establishing a strategic defence partnership and expanding cooperation in areas including “special operations and interoperability, cyber space, counter terrorism”.

(With inpust from agencies)