ADNOC Gas has signed a 10-year sale and purchase agreement with GAIL Limited, India’s largest natural gas company, to supply 0.52 million metric tonnes per annum of liquefied natural gas, starting in 2026.
Under the agreement, the main terms agreement previously signed in January this year was converted into a binding sale and purchase agreement, and the agreed quantities of liquefied natural gas will be supplied through six shipments per year directly to GAIL from natural gas. liquefaction facility connected to GAIL.
The company’s Das Island facility is believed to be the third oldest LNG production facility in the world.
Since the facility began operations in 1977, more than 3,000 cargoes of LNG have been shipped to customers around the world.
Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC Gas, said: “This agreement strengthens ADNOC’s position as a reliable global supplier of natural gas, and also demonstrates our desire to benefit from growth opportunities in the global demand for gas, as well as strengthening our position as a preferred export partner for energy solutions in the region. “
He predicted that the demand for liquefied natural gas will grow by 15% globally in the next decade, driven by the shift from using coal to relying on gas as an energy source. for the industrial sector in China and increased use of liquefied natural gas to generate electricity in India, South Asian countries, and others in Southeast Asia.
He said, as a result, the commitment to more than double liquefied natural gas production capacity is part of the strategy to secure a greater share of the growing global demand for low-carbon products from ADNOC Gas .
Sanjay Kumar, Executive Director of Marketing at GAIL, said that India is witnessing a growing demand for liquefied natural gas due to the growing demand for natural gas in various sectors, and to meet these needs, the company plans to significantly increase its natural gas portfolio. in the coming years, and this agreement with ADNOC Gas is an important step in this regard and will allow the company to increase its current LNG portfolio to better serve the customer base between they are diverse.
As part of its ambitious global growth efforts, ADNOC Gas announced this week that it plans to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost price by the second half of 2028, which is the expected initial production date.
The project will include two liquefied natural gas production lines with a production capacity of 4.8 million metric tons per year, and will be the first of its kind in the Middle East and North Africa to operate on energy clean, making it one of the lowest carbon emitters. – intensive LNG facilities.
The project will use artificial intelligence solutions and tools, digital transformation, and the latest technologies to increase efficiency and increase safety standards. reaching more than 15 million metric tons per year.
It should be noted that India was the fourth largest importer of liquefied natural gas in the world in 2023.
With imports of liquefied natural gas expected to increase over the next decade, India aims to increase the share of natural gas in the country’s energy mix from the current 6% to 15 % by 2030.
The infrastructure in India has been strengthened and developed to accommodate the volume of natural gas imports necessary to keep up with the needs of the movement to use this resource, which has doubled compared to the 21 million metric tons imported in 2014.
2024-11-14 16:21:00
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