UAE announces $2.5bn gas deal with Indian company

The UAE announced on Monday a new liquified natural gas (LNG) deal with a state-run Indian company valued at more than $2.5 billion.

The contract, signed between ADNOC Gas — a subsidiary of the Abu Dhabi National Oil Company — and Hindustan Petroleum Corporation Ltd, provides for the supply of an annual half a million tonnes of LNG over a 10-year period, the Emirati company said.

The deal "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, ADNOC Gas said.

From 2029, Indian firms will account for just over a fifth of ADNOC Gas's annual 15.6-million-tonne output, according to the company.

The latest deal was finalised on the sidelines of a visit by Emirati President Mohamed bin Zayed Al Nahyan to New Delhi, where he met with Indian Prime Minister Narendra Modi.

In a joint statement, the two leaders hailed growing trade between their countries since a 2022 agreement, and committed to doubling it to $200 billion by 2032.

Modi's office said in a separate statement that the two countries also agreed to work together to establish a strategic defence partnership and expand cooperation in areas including "special operations and interoperability, cyber space, counter terrorism".