New Delhi: Hindustan Petroleum Corporation Limited (HPCL) on Monday informed stock exchanges that it has signed a Sale Purchase Agreement (SPA) with Abu Dhabi Gas Liquefaction Company for the procurement of liquefied natural gas (LNG) for a 10-year term, with deliveries scheduled to begin in 2028.
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A joint statement issued by India and the UAE on Monday said the two sides “welcomed signing of a 10-year LNG Supply Agreement between Hindustan Petroleum Corporation Limited (HPCL) and ADNOC Gas for the delivery of 0.5 million tonnes per year of liquefied natural gas, beginning in 2028.”
Under the terms of the SPA, HPCL said it “will receive LNG at its 5 million tonne per annum LNG Storage and Regasification Terminal at Chhara, Gujarat.”
The supplies will support “the requirements of its own refineries, City Gas Distribution (CGD) network and gas demand across key sectors like fertilizers, power, petrochemicals and other industries,” the company said.
HPCL noted that ALNG “is a subsidiary of ADNOC Gas,” which it described as “a world-class, large-scale integrated gas processing and sales company operating across the gas value chain.”
The LNG agreement was signed during the official visit of Sheikh Mohamed bin Zayed Al Nahyan to India on Monday. This marked his fifth visit to India in the last 10 years and his third official visit as President of the UAE.
According to the joint statement, “the two leaders expressed satisfaction at the strength of the bilateral energy partnership and underscored the UAE’s contribution to India’s energy security.”
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HPCL said the agreement “underscores the deepening economic ties between India and UAE, emphasizing the role of LNG in supporting India’s energy transition,” adding that the supplies under the SPA “mark a significant milestone in India’s energy security and HPCL’s commitment to cleaner energy transition.”