HPCL and ADNOC Trading Forge Strategic LNG Alliance
In a strategic move aimed at strengthening energy cooperation between India and the UAE, Hindustan Petroleum Corporation Limited (HPCL) has signed its first-ever LNG trading supply agreement with ADNOC Trading, the trading arm of the Abu Dhabi National Oil Company. This milestone agreement not only reinforces the growing ties between the two nations but also marks a pivotal moment in HPCL’s journey toward a more diversified and sustainable energy portfolio.
Under the agreement, ADNOC Trading will supply liquefied natural gas (LNG) to HPCL, with deliveries set to be received at the recently commissioned Chhara LNG Terminal in Gujarat. Operated by HPCL LNG Ltd., a wholly owned subsidiary of HPCL, the Chhara terminal boasts a robust regasification capacity of 5 million metric tonnes per annum (MMTPA) and a substantial LNG storage capacity of 400,000 cubic metres, housed in two equally sized tanks.
This partnership reflects a shared commitment to enhancing energy security while supporting India’s ambitious energy transition goals. With natural gas playing an increasingly crucial role in the country’s decarbonization strategy, the collaboration provides HPCL with greater supply flexibility and access to reliable, cleaner fuel sources. It also enables the company to meet both its captive requirements and the growing demand from downstream customers across the region.
From ADNOC Trading’s perspective, the agreement solidifies its presence in the South Asian market and aligns with the UAE’s broader objective of deepening economic and energy relations with India. As a major global player in the trading of crude oil, LNG, and other petroleum products, ADNOC Trading brings both scale and expertise to the table, positioning itself as a long-term partner in India’s evolving energy landscape.
The timing of this deal is particularly significant, as global energy markets undergo a dynamic shift toward more resilient and environmentally conscious models. By entering into this supply agreement, HPCL is not only future-proofing its energy supply chain but also contributing to India’s target of increasing the share of natural gas in its energy mix.
In essence, this collaboration between HPCL and ADNOC Trading is more than just a commercial arrangement—it is a strategic alliance that underscores mutual trust, shared vision, and a joint commitment to a cleaner and more secure energy future.
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