UAE Secures $2.5 Billion LNG Agreement with Indian Partner

In a significant move, the United Arab Emirates (UAE) has entered into a lucrative liquefied natural gas (LNG) supply agreement worth over $2.5 billion with Hindustan Petroleum Corporation Limited (HPCL), a key player in India's energy sector.

This contract, orchestrated by ADNOC Gas, part of the Abu Dhabi National Oil Company, entails an annual supply of 500,000 tonnes of LNG over the next decade.

With this partnership, ADNOC Gas has now increased its total LNG contract value to over $20 billion, marking India as the UAE’s leading natural gas client.

By 2029, Indian enterprises will represent more than 20 percent of ADNOC Gas’s annual output, which sits at 15.6 million tonnes.

This agreement was officially cemented during the visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to New Delhi, where he engaged in discussions with Indian Prime Minister Narendra Modi.

In their joint statement, the leaders praised the surge in bilateral trade since the 2022 Comprehensive Economic Partnership Agreement (CEPA) and pledged to elevate trade to $200 billion by 2032.

The two nations also resolved to enhance defense and security collaboration, including areas such as special operations, military interoperability, cyber security, and counter-terrorism measures, as outlined by the office of the Indian Prime Minister.