UAE, India sign $2.5B LNG supply deal

The United Arab Emirates announced Monday a new liquefied natural gas deal worth more than $2.5 billion with a state-run Indian firm, deepening energy ties between the two countries.

The 10-year contract between ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company, and Hindustan Petroleum Corporation Ltd. covers the supply of 500,000 tonnes of LNG annually, ADNOC Gas said.

The agreement "brings the total value of contracts being supported and operated by ADNOC Gas to over $20 billion" and will make India the UAE’s largest natural gas customer, the company said.

Starting in 2029, Indian companies will account for just over one-fifth of ADNOC Gas’ annual output of 15.6 million tonnes.

The deal was finalized during a visit by UAE President Mohamed bin Zayed Al Nahyan to New Delhi, where he met Indian Prime Minister Narendra Modi.

In a joint statement, the two leaders cited expanding trade ties since a 2022 agreement and pledged to double bilateral trade to $200 billion by 2032.