ADNOC Gas Signed 10-Year LNG Supply Deal with HPCL

SEATTLE (Oil Monster): ADNOC Gas, a subsidiary of Abu Dhabi National Oil Company (ADNOC) and Hindustan Petroleum Corporation Limited (HPCL), a unit of the state-owned Oil & Natural Gas Corporation (ONGC) have signed a heads of agreement (HoA) towards supply of liquefied natural gas (LNG) for a period of ten years.

This is further to the LNG trading supply agreement signed between ADNOC Trading and HPCL in May this year.

As part of the agreement, ADNOC will supply 0.5 million metric tonnes per annum (mmtpa) of LNG over the period. HPCL will receive the shipment at the Chhara LNG terminal, from where it will be distributed, mainly to its refineries and also to downstream customers. The LNG will be sourced from ADNOC Gas’ Das Island liquefaction facility.

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The deal is expected to strengthen ADNOC’s partnership with key Indian players.

Commenting on the development, Fatema Al Nuaimi, CEO, ADNOC Gas said that the long term agreement is the third with Indian companies in the past year. It reflects the robust energy partnership between both the countries and underscores ADNOC Gas’ ability to meet rising global demand for LNG.

Earlier in November 2014, ADNOC Gas had signed deal with GAIL India, followed by another agreement with Indian Oil Corporation (IOC) in February of this year.