India and the United Arab Emirates (UAE) have finalised a long-term liquefied natural gas (LNG) supply agreement valued at approximately $3 billion, according to official announcements and multiple credible media reports. The agreement is part of broader efforts by both countries to strengthen energy security and deepen bilateral economic cooperation.
Under the deal, ADNOC Gas, a subsidiary of Abu Dhabi National Oil Company, will supply LNG to Hindustan Petroleum Corporation Limited (HPCL) over a period of around 10 years. The annual supply is reported to be about 0.5 million tonnes, with deliveries expected to begin later in the decade, subject to contractual and operational conditions.
The agreement was concluded during high-level discussions between Indian Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan, who was on an official visit to India. Alongside the LNG pact, both nations discussed expanding cooperation across sectors including trade, investment, energy, and defence.
Officials from both sides have described the LNG agreement as a step toward ensuring stable and diversified energy supplies for India, while also reinforcing the UAE’s role as a key energy partner. India has been gradually increasing the share of natural gas in its energy mix as part of its long-term transition strategy, while the UAE continues to expand its global LNG footprint.
Media reports estimate the total contract value at up to $3 billion, based on prevailing market assumptions over the contract duration. However, the final commercial value may vary depending on future pricing mechanisms, demand conditions, and other contractual terms. Neither government has disclosed detailed pricing formulas.
The LNG deal also aligns with the broader goal set by India and the UAE to significantly increase bilateral trade, with leaders from both countries expressing intent to raise total trade volumes to around $200 billion in the coming years.
At this stage, the information available is based on official statements and reporting by established news organisations. Any further operational or financial details are expected to be disclosed by the companies involved in due course.
This article is intended solely for informational purposes and is based on publicly available reports and official statements. It does not offer legal, financial, or investment advice.