UAE Seals Massive $2.5 Billion LNG Deal With Hindustan Petroleum
ADNOC Gas will supply 0.5 million tonnes of LNG yearly to HPCL for a decade, boosting bilateral trade and energy ties.
The United Arab Emirates has signed a liquefied natural gas (LNG) supply agreement valued at more than $2.5 billion with India’s state-run Hindustan Petroleum Corporation Ltd (HPCL), marking a significant expansion of energy ties between the two countries.
The contract was signed between ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), and HPCL and provides for the supply of approximately 500,000 tonnes of LNG annually over a 10-year period. ADNOC Gas said the long-term deal reinforces its role as a key supplier to fast-growing Asian energy markets.
According to the Emirati company, the agreement increases the total value of contracts supported and operated by ADNOC Gas to more than $20 billion. With this addition, India is set to become the UAE’s largest customer for natural gas, reflecting rising Indian demand for cleaner energy sources as the country transitions away from more carbon-intensive fuels.
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ADNOC Gas stated that from 2029, Indian companies will account for just over one-fifth of its annual production capacity of 15.6 million tonnes of LNG. The development highlights the growing strategic importance of India in the UAE’s long-term energy export strategy.
The deal was finalised on the sidelines of a visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan to New Delhi, where he held talks with Prime Minister Narendra Modi. The visit focused on strengthening bilateral cooperation across multiple sectors, including energy, trade, and security.
In a joint statement, the two leaders welcomed the rapid growth in trade following a comprehensive economic partnership agreement signed in 2022 and pledged to double bilateral trade to $200 billion by 2032. India’s Prime Minister’s Office also said both countries agreed to deepen cooperation in defence, cybersecurity, counter-terrorism, and special operations, underscoring the expanding strategic partnership between the UAE and India.
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