HPCL and ADNOC's Game-Changing LNG Deal

Hindustan Petroleum Corporation Ltd (HPCL) has signed a $3 billion deal with Abu Dhabi National Oil Company Gas (ADNOC Gas) to buy 0.5 million tonnes of LNG annually for 10 years, starting 2028. This agreement bolsters India's gas supply while fortifying the UAE-India energy relationship.

Hindustan Petroleum Corporation Ltd (HPCL) has entered into a significant $3 billion agreement with the Abu Dhabi National Oil Company Gas (ADNOC Gas) to purchase liquefied natural gas (LNG), the company announced. The deal establishes HPCL as a major customer of UAE's LNG output, underscoring the strategic energy collaboration between the two nations.

According to the agreement, ADNOC will supply HPCL with 0.5 million tonnes of LNG annually over a ten-year period starting in 2028. The arrangement follows a previously signed Heads of Agreement, now formalized into a long-term Sales and Purchase Agreement (SPA), valued between $2.5 to $3 billion. This marks an essential step in addressing India's increasing energy needs and diversifying its energy mix to include more natural gas.

This deal, termed as a milestone in UAE-India relations, enhances HPCL's position as a key gas supplier. It aligns with India's desire to raise the share of natural gas in its energy use to 15% by 2030. The contract will also support various sectors such as refineries, city gas distribution, power, and petrochemicals, reflecting a significant move towards energy security and affordability.

(With inputs from agencies.)