10-year LNG supply deal with ADNOC diversifying India’s energy mix

August 4, 2025, by Dragana Nikše

ADNOC Gas, an affiliate of Abu Dhabi National Oil Company (ADNOC), has signed a heads of agreement (HoA) with India’s Hindustan Petroleum Corporation Limited (HPCL), a unit of the state-owned Oil & Natural Gas Corporation (ONGC), for the supply of liquefied natural gas (LNG).

Under the deal, ADNOC will provide 0.5 million metric tonnes per annum (mmtpa) of LNG for 10 years. The shipments will be received at the Chhara LNG terminal, from which HPCL will distribute them to meet the demand of its refineries, city gas distribution network, and marketing to downstream customers.

The LNG will be sourced from ADNOC Gas’ Das Island liquefaction facility, which has a production capacity of 6 mmtpa. According to the UAE player, this is the world’s third-longest-operating LNG plant, which has shipped over 3,500 LNG cargoes worldwide since starting operations.

*HoA signing; Source: HPCL via LinkedIn*

Fatema Al Nuaimi, Chief Executive Officer (CEO) of ADNOC Gas, said: “This long-term agreement with HPCL, our third with Indian companies in the past year, reflects the robust energy partnership between the UAE and India. This milestone underscores ADNOC Gas’ ability to reliably meet rising global demand for LNG and support India’s ambition to increase natural gas to 15% of its primary energy mix by 2030.”

This comes on the heels of an LNG trading supply agreement ADNOC Trading signed with HPCL in May. Additionally, ADNOC Gas inked deals with Indian Oil Corporation in February 2025 and GAIL India in November 2024.

ADNOC inks LNG deal with Indian player

Project & Tenders

The latest long-term deal is believed by ADNOC to strengthen its partnership with key Indian players, underscoring its expanded global footprint, particularly across what it says is a high-demand Asian LNG market.

A subsidiary of HPCL, HPCL LNG (also known as HPLNG), operates the Chhara terminal located in India’s state of Gujarat. Boasting a 5 mtpa capacity, expandable to 10 mtpa, the terminal received its commissioning cargo in January.