NEW DELHI: The state-owned Hindustan Petroleum Corporation Limited (HPCL) on Monday announced the signing of a Heads of Agreement (HoA) with Abu Dhabi Gas Liquefaction Company (ALNG), a subsidiary of ADNOC Gas, for the procurement of Liquefied Natural Gas (LNG) over a 10-year term.
Under the terms of the HOA, HPCL will receive LNG at the recently commissioned Chhara LNG Terminal in Gujarat to meet the demand of its refineries, City Gas Distribution network, and for marketing to downstream customers. The company said this initiative further enables HPCL to build a diverse portfolio encompassing long- and short-term LNG contracts to secure LNG and serve customers at competitive prices.
As per HPCL, ADNOC Gas is a world-class, large-scale integrated gas processing and sales company operating across the gas value chain. HPCL further said that the supply under this agreement marks a significant milestone in India’s energy security and HPCL’s commitment to cleaner energy transition. “This strategic partnership underlines India’s commitment towards increasing the share of gas in its energy basket. Such long-term LNG agreements play a vital role in ensuring reliability, affordability and supply security amidst a highly volatile global energy landscape,” said the company in a press note.
HPCL operates two oil refineries on India’s East and West Coasts and holds stakes in HMEL and MRPL joint venture refineries. HPCL also has a vast marketing network that includes 23,901 retail outlets, 6,384 LPG distributorships, an LPG import facility, 55 LPG bottling plants, 57 aviation fuel stations, and approximately 5,132 km of pipeline network.