Hindustan Petroleum Corporation Limited (HPCL) has inked a 10-year Sale Purchase Agreement (SPA) with Abu Dhabi Gas Liquefaction Company (ALNG), a subsidiary of ADNOC Gas, for LNG procurement. Supplies will flow to HPCL's 5 MMTPA Chhara terminal in Gujarat, fueling refineries, city gas networks, and sectors like fertilizers and power. This deal deepens India-UAE ties amid the nation's push for cleaner energy transition.
HPCL, a key player in India's oil refining and marketing, announced the landmark SPA on January 19, 2026. The agreement guarantees steady LNG deliveries from ALNG's Das Island liquefaction facility, one of the world's longest-operating plants with 6 MMTPA capacity. This move aligns with HPCL's strategy to diversify its gas portfolio through long-term contracts, ensuring competitive pricing in a volatile market.
The LNG will cater to HPCL's refineries, expanding City Gas Distribution (CGD) networks, and vital industries including power, petrochemicals, and fertilizers. Chhara terminal, with its 5 MMTPA regasification capacity and 400,000 cubic meter storage, stands ready as the import hub. ADNOC Gas plans to operate 15.6 MMTPA LNG capacity by 2029, with significant volumes earmarked for Indian buyers like HPCL.
Key Highlights
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Supplies sourced from ADNOC Gas' Das Island facility, boasting over 3,500 global cargoes shipped
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Supports India's goal to raise natural gas share to 15% in energy mix by 2030
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Enhances energy reliability for refineries, CGD, fertilizers, power, and petrochemicals
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Underlines strengthening economic bonds between India and UAE
Sources: Hindustan Petroleum Corporation Limited (HPCL), ADNOC Gas, PSU Connect