New Delhi: In a major step toward strengthening India’s energy security and supporting its cleaner energy transition, Hindustan Petroleum Corporation Limited (HPCL) has signed a 10-year Sale and Purchase Agreement (SPA) with Abu Dhabi Gas Liquefaction Company (ADNOC Gas) for the procurement of liquefied natural gas (LNG). Deliveries under the agreement are scheduled to begin in 2028, with an annual supply of 0.5 million tonnes of LNG.
LNG Supplies to Strengthen Domestic Energy Needs
According to the SPA, HPCL will receive LNG at its 5 million tonne per annum LNG Storage and Regasification Terminal at Chhara, Gujarat. The supplies are expected to support HPCL’s own refineries, City Gas Distribution (CGD) network, and gas requirements across key sectors including fertilizers, power, petrochemicals, and other industries. This agreement is seen as a crucial step in meeting India’s growing natural gas demand while promoting cleaner energy usage.
Significance of the Counterparty
ADNOC Gas, the counterparty for this agreement, is a world-class, large-scale integrated gas processing and sales company operating across the entire gas value chain. Its subsidiary, Abu Dhabi Gas Liquefaction Company (ALNG), will be responsible for supplying LNG to HPCL. The partnership reflects the strengthening of bilateral energy ties between India and the UAE.
Strategic Timing and Diplomatic Context
The SPA was signed during the official visit of Sheikh Mohamed bin Zayed Al Nahyan to India, marking his fifth visit to the country in the last decade and his third official visit as UAE President. The signing was highlighted in a joint India-UAE statement that emphasized the strength of bilateral energy cooperation and acknowledged the UAE’s ongoing contribution to India’s energy security.
Supporting India’s Cleaner Energy Transition
HPCL noted that the agreement not only reinforces India’s energy security but also aligns with the nation’s goals for a cleaner energy transition. LNG, being a cleaner fossil fuel compared to coal and oil, plays a key role in reducing emissions while ensuring reliable fuel supply for industrial and domestic consumption.
About HPCL
Hindustan Petroleum Corporation Limited (HPCL) is a leading Indian public sector undertaking (PSU) in the oil and gas sector, engaged in refining, distribution, and marketing of petroleum products. With a significant presence across India, HPCL operates refineries, fuel stations, and city gas distribution networks, serving millions of customers nationwide. The company actively participates in initiatives supporting energy security, sustainable growth, and cleaner energy solutions, positioning itself as a key player in India’s energy transition.
