The primary agreement, established with Indian Strategic Petroleum Reserves Limited, will expand ADNOC’s crude oil storage facilities in India. This 30M barrels expansion includes existing storage infrastructure at Mangalore and potential new sites in Vishakhapatnam and Chandikol. In parallel, the collaboration will explore the feasibility of crude oil storage in Fujairah, United Arab Emirates, as part of India’s strategic petroleum reserve.

Furthermore, the agreements encompass potential opportunities for Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) storage within India. These initiatives are crucial for ensuring energy security and enhancing the resilience of UAE-India energy supply chains, especially in the current challenging global shipping environment.

In addition to crude oil storage, ADNOC has also entered into a strategic collaboration with Indian Oil Corporation. This agreement focuses on exploring enhanced LPG supply and trading opportunities, potentially leveraging ADNOC Global Trading. Building upon an existing LPG term contract that has been in place since 2023, this collaboration aims to support the development of a potential long-term LPG sale and purchase agreement. The move reinforces ADNOC’s established position as a reliable LPG supplier to India and facilitates deeper integration across supply and shipping operations.

These accords underscore ADNOC’s expanding portfolio of partnerships with Indian companies, which spans crude, LNG, and LPG supply, alongside energy storage solutions. These collaborations are designed to meet India’s escalating energy demand and support its long-term economic growth trajectory. India remains a priority market for ADNOC, recognized as one of the world’s fastest-growing major economies and a significant driver of global energy demand.

Dr. Sultan Al Jaber, ADNOC Managing Director and Group CEO, highlighted the significance of these developments. He stated, “India’s scale and growth trajectory make it one of the defining energy markets of our time. As demand accelerates alongside a rapidly expanding population, the strength of the UAE–India energy partnership becomes ever more critical. These agreements reinforce supply security, deepen our strategic ties, and underscore ADNOC’s role as a dependable and reliable partner in powering India’s long-term economic growth.”

The deepening of this energy partnership, with this 30M barrels expansion of crude oil storage, is a testament to the shared vision for economic prosperity and energy security between India and UAE.

At the company’s headquarters in Athens, the Executive Director – Marketing – Shipping & International LNG for GAIL, S. Bairagi, and the Owner of Alpha Gas, Anna Angelicoussis, signed the agreement.

It is well to be noted that Energy Fidelity, which is the LNG carrier, can hold 174,000 cubic meters of cargo and also has a cutting-edge two-stroke propulsion system. It also possesses an advanced air lubrication technology and shaft generators, which go on to make the engine run more efficiently and cut down on pollution quite significantly.

Apparently, the deal is indeed a big step forward for GAIL as part of the Maritime Amrit Kaal Vision 2047 plan by the government, which aims to improve the maritime infrastructure of India and make sure the country has enough energy in the long term.

Notably, GAIL is India’s biggest natural gas company. It is a Maharatna Public Sector Undertaking involved in all parts of the gas value chain, right from trading and transmission to LNG shipping, re-gasification, and petrochemicals, as well as city gas distribution.

As part of its strategy to integrate logistics, the company has built the largest LNG fleet in India and also runs a network of over 18,001 km of natural gas pipelines throughout the country. This lets GAIL make sure that the growing energy needs of the country are met with a consistent supply of LNG.

GAIL has a large and varied LNG portfolio, which makes it one of the top LNG portfolio marketers in the world and helps it ensure long-term supply security.

Alpha Gas is a leading Greek shipping company that offers a wide range of LNG ship management services, such as technical management, commercial operations, and procurement and crewing, as well as overseeing the building of new ships.

The company is known for putting a lot of emphasis on health, safety, and quality, as well as environmental standards. It also invests in high-tech ships that are very energy-efficient.

Both companies want to improve operational efficiency and turn energy supply chain robust, as well as help make energy transportation cleaner and more sustainable by way of this partnership.

The imports from India stood at ₹3.1 billion in October 2025. The increase of Russian fossil fuels in November 2025 from India was driven due to increase in crude oil imports to ₹2.6 billion from ₹2.5 billion and also coal imports to ₹457 million from ₹351 million as compared to the previous month. Imports of refined oil products also went on to edge up to ₹236 million from ₹222 million.

It is quite a known fact that Washington has been pressuring India to halt its purchases of Russian crude and has also imposed an additional 25% tariff on the Indian exports to the US as part of its pressuring campaign. The US went on to sanction the top two oil exporters of Russia – Rosneft as well as Lukoil—in October 2025 with the aim to disincentivize the buyers of Russian oil and also squeeze revenues of Moscow. Simultaneously, Washington is also pressing Ukraine to go ahead and accept a deal that could bring an end to the three-year-old war with Russia.

The sanctions have started to affect the flow of Russian oil in the global markets. In November 2025, total crude export revenues saw a decline of 6% month-on-month to ₹216 million per day.

If we take a look at the figures, with purchases of ₹3.1 billion, China still remained the largest buyer when it comes to Russian crude in November 2025. It also imported coal for ₹899 million, refined products worth ₹513 million, pipeline gas amounting to ₹463 million, and LNG at ₹390 million. Türkiye, on the other hand, imported ₹675 million of pipeline gas, ₹290 million of crude oil, and ₹622 million of oil products, as well as ₹232 million of coal, from Russia in November 2025.

In an address on the Independence Day of the country, Prime Minister Modi said that India is going to harness its deepwater energy resources, make the energy self-reliance more robust, and also decrease the dependence when it comes to foreign fuel imports. Apparently, India is also boosting its energy capacity with advancements within nuclear, solar, hydro, and hydrogen energy, said the prime minister. The deepwater exploration mission is going to add further to another mission, which is the National Critical Minerals Mission, in order to secure the resources that are necessary for industry, energy, and defence. India looks forward to launching the exploration across 1200 sites when it comes to critical minerals.

According to Prime Minister Modi, controlling these minerals goes on to strengthen the strategic autonomy, thereby ensuring the country’s industrial as well as defence sectors remain self-dependent.

Interestingly, India prepares itself for an offshore exploration boom post launching the biggest ever acreage, which is up for grabs under the open acreage licensing program – OALP round X.

Hardeep Singh Puri, the minister of petroleum and natural gas, government of India, in July 2025 posted on X that the focus clearly happens on further enhancing as well as making the domestic E&P efforts more robust. During that time, he was on a visit to an offshore industry event in Bergen, Norway.

Mr. Puri added that the energy journey of India offers engagement opportunities along with Indian companies throughout multiple areas, which includes the joint participation in the upcoming OALP – X bidding round and partnership when it comes to subsea manifold and offshore technology development, in addition to rolling out AI-driven solutions in terms of digital transformation within upstream operations.

Notably, India is looking forward to boosting its domestic oil and gas production amidst the consistently growing demand as well as volatile international energy prices. In a starting figure, the country happens to depend on imports for over 85% of its daily oil needs.

The dependence of India on crude oil imports set a record high in the last fiscal year ending March 31, 2025, as Indian fuel demand consistently grows, whereas the domestic crude production still remains flat.

India went on to import almost 88.2% of the crude it consumed between April 2024 and February 2025. The import dependence grew from 87.7% within the same period of the 2023-2024 fiscal year.

The company, estimated to have the seventh largest natural gas reserves globally, will supply 500,000 metric tonnes of LNG per annum to HPCL, Adnoc Gas said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. The total value of the deal has not been disclosed.

The gas will be supplied from Adnoc Gas’ Das Island liquefaction facility with a 6 mmtpa production capacity, the company stated, while explaining that the Das Island LNG plant has shipped over 3,500 LNG cargoes globally since the commencement of operations.

“This milestone underscores Adnoc Gas’s ability to reliably meet rising global demand for LNG and support India’s ambition to increase natural gas to 15 per cent of its primary energy mix by 2030,” said Fatema Al Nuaimi, chief executive of Adnoc Gas.

HPCL is Adnoc Gas’s third agreement with Indian companies since the past year. This reflects the “robust energy partnership” between the UAE and India, she added.

The latest agreement strengthens Adnoc Gas with major Indian players as it follows recent deals with Indian Oil Corporation and GAIL India and marks its presence globally in the high-demanding Asian LNG market.

By 2030, India is aiming to have natural gas make up a 15 percent share of its total energy mix.

Adnoc’s Strategic Expansion in Global LNG Markets 

The latest agreement builds on Adnoc’s strategy to build its customer base after a series of agreements for LNG supply to India in the past two years.

Previously, in February, Adnoc Gas signed a 14-year deal to supply up to 1.2 million tonnes per annum of LNG to state-backed Indian Oil. The agreement is valued at an amount between $7 billion and $9 billion, Adnoc Gas said at the time, adding that Indian Oil is set to become the largest buyer of LNG from Adnoc by 2029.

The Abu Dhabi-based company signed another contract with Indian Oil in September last year, under which it signed a preliminary 15-year deal with the firm for LNG supply to India with 1 million tonnes annually. 

Adnoc also signed a 10-year agreement to supply LNG to state-owned energy corporation Gail India in January last year, without disclosing the total value of that agreement.

Previously, Adnoc Distribution had signed an agreement with Hindustan Petroleum in June 2023. The purpose of the agreement was to explore opportunities for expanding their lubricants and allied products businesses in the UAE, India and other markets.

Adnoc Gas, which has access to 95 percent of the UAE’s natural gas reserves and is looking to boost exports of products such as LNG, liquefied petroleum gas, and naphtha. Alongside other Adnoc units, Adnoc Gas has been boosting investments to expand its geographical and operational reach. The company supplies approximately 60 percent of the UAE’s sales gas needs and supplies end-customers in more than 20 countries.

In February, Adnoc entered a sales and purchase agreement with Japan’s Osaka Gas for the supply of up to 800,000 tonnes a year of LNG from its Abu Dhabi Ruwais LNG project, the first long-term LNG sales deal between Adnoc and the Japanese utility.

Adnoc Gas is a key player in Adnoc’s strategy to increase its natural gas production capacity and expand global LNG exports.

In April last year, Adnoc Gas said it plans to invest more than $13 billion by 2029 to pursue domestic and international growth opportunities as it aims to expand its LNG production capacity.

By 2028, the company aims to more than double its LNG output capacity through the strategic acquisition of the new Ruwais LNG plant from parent company Adnoc and potentially target assets in Europe, India, China, and South-East Asia, it said at the time.

In May this year, Adnoc Gas reported a 7 percent year-over-year rise in net income to $1.27 billion due to robust domestic demand for gas and sustained economic growth in the UAE. The company is expected to announce its second-quarter financial results soon.

Shell’s 2025 LNG Outlook forecasts a 60 per cent growth in global demand for the fuel by 2040, driven by Asian economic growth, emissions reductions in industry and transport, and the rise of artificial intelligence. The consumption of the fuel – considered a cleaner alternative to coal and crude oil – is expected to reach 630 million tonnes to 718 million tonnes a year by 2040, compared with 407 million tonnes last year, according to Shell.

As a monopoly that comes pretty naturally, the transmission network needs to have robust, neutral, as well as non-discriminatory, access frameworks so as to make sure of fair and just market participation. Efficient, transparent, and prompt access to the transport capacity without compromising the security of the gas grid happens to be essential in terms of fostering competition and at the same time unlocking the complete potential of the gas sector in India.

The gas market in India holds great potential so as to support its energy shift, especially as the efforts go on to intensify to blend cleaner and also more sustainable energy sources. But the inefficiencies in the transportation capacity allotment as well as the access mechanisms happen to have quite a strained market growth. Major hurdles such as regulatory frameworks that are outdated, consolidation when it comes to marketing and transportation functions, as well as a dearth of transparency-all require immediate reform.

Addressing all this happens to be very critical so as to make sure of an open, efficient, as well as competitive market that can, in a way, respond dynamically to the ever-changing energy landscape.

Barriers in Gas Transport

One of the fundamental challenges that affects the sector is the outdated code that happens to govern the access to grid and pipelines as well as related procedures.

The present code has existed for over 10 years and, as a matter of fact, does not sync with the global best practices or even cater to the changing demands of the market. For instance, pipeline operators are allowed almost three days to go ahead and confirm their capacity booking, which is indeed too long a time when it comes to short-term transactions. Moreover, the absence when it comes to mechanisms like day-ahead as well as within-day capacity booking happens to restrict the flexibility and also stifles the progress of a market-driven balancing system. Additionally, it remains quite a challenging task to book capacity when it comes to non-working days.

One more prominent issue is the dearth of transparency when it comes to accessing the pipeline capacity. Unlike the developed markets wherein the gas bulletin boards – GBBs offer real-time data in terms of capacity, India does not have such a platform. Users have to individually get in touch with every owner for pipelines in their contract path, hence dealing with varied rules and complex procedures. There happens to be no single, online, and prompt capacity portal for booking.

The integration when it comes to marketing and the transportation functions adds one more layer of intricacy. Organizations that happen to integrate these functions go on to reap advantages such as eradication of imbalance charges as well as reduced booking response times when it comes to their bundled agreements while at the same time imposing more stringent conditions when it comes to other entities. This goes on to create a not-so-level playing field, discourages just and fair competition, and limits the opportunities when it comes to third-party suppliers, thereby, at the end, hindering the growth of the market.

Moreover, gas-fired power plants that are important when it comes to balancing fluctuations within renewable energy generation happen to be underutilized. These plants face barriers in terms of securing timely access to the pipeline capacity, thereby stemming from the ineffectiveness as far as the capacity booking regime is concerned. India, indeed, needs a series of reforms in order to deal with all these situations.

Revision of Access Code – The access code requires being revised as per the present market needs as well as global benchmarks. Decreasing the response time when it comes to capacity reservations and at the same time executing provisions in terms of day-ahead and within-day agreements is sure going to build flexibility and also broaden the market.

Coming-up of an independent system operator – ISO – It is only viable to state that an independent operator brings fairness and transparency as well as efficient access to the transportation capacity. It would go on to resolve conflicts of interest, if any, that happen to arise from the integrated entities.

GBBs that are electronic – Executing GBBs will help with real-time access to information pertaining to the capacity of the pipeline. It will also go on to create an open as well as rule-based structure that will go on to help all the participants from the market to access as well as book capacity, hence pushing up the dependence element and also enhancing the efficiency of the market.

Unbundling marketing as well as transport functions – A segregation when it comes to marketing along with transportation by way of decoupling these functions will go on to create a much more balanced environment when it comes to independent suppliers. Eradicating the right of first use aspect and at the same time encouraging competition that’s fair between the bundled entities as well as third-party participants shall go ahead and promote better participation along with innovation in the sector.

Reform Benefits  

These reforms are going to lead to a much more efficient as well as transparent gas market. Faster and also more dependable capacity booking processes shall decrease the operational delays, whereas the real-time capacity information shall empower the stakeholders to make some informed decisions. Unbundling the transport and, along with it, the marketing functions shall stimulate competition to a great extent, attract fresh investors, and also support a strong market spectrum.

The power sector is also going to gain significantly from these alterations. Enhanced access to gas supplies as well as pipeline capacity will enable the gas-driven power plants to play a very crucial role when it comes to balancing RE sources, making sure of grid stability, as well as effectively meeting a peak power demand.

The fact is – The gas sector in India stands at a crossroads, and the proposed reforms can as well act as an antidote to certain inefficiencies and also a strategic move to make sure that the industry is future-proof. Upgrading the revolutions, equal access, as well as transparency, all would go on to lead to the creation of a vibrant as well as competitive gas market that supports the broader energy targets of the nation. All these reforms would help with better access when it comes to transport capacity and go on to make the gas sector in India a sort of an enabler of a clean energy shift.

The pipeline starts from the Mangala Processing Terminal (MPT) in Barmer and terminates at Bhogat, near Jamnagar.Approximately 321 miles (516km) of the pipeline falls in Gujarat, while the rest is in Rajasthan.

Originating at the MPT, the pipeline travels 202 miles (325km) southwards and terminates at Viramgam, near Ahmedabad. From there, the pipeline runs 165 miles (265km) south-west and ends at an oil export terminal at Salaya in Jamnagar.

The remaining 49-mile (78.8km) section currently under construction will extend the pipeline from Salaya to the Bhogat terminal located on the Arabian Sea coast in Gujarat.

Construction details of the Indian pipeline

The project was approved by the Indian Government in December 2007. Construction on the project’s first phase was formally launched in June 2008 under an engineering, procurement and construction (EPC) contract. The pipeline and related infrastructure were completed in a short period of two years.

The first phase of the pipeline traverses more than 270 villages and has more than 700 crossings, including 34 major rivers and 38 canals. The construction activity required the engagement of more than 6,000 people.

MDP’s innovative design features

The pipeline is equipped with a skin effect heat management system (SEHMS). This innovative system prevents the crude oil from turning into wax by ensuring that temperature inside the pipeline always remains higher than the wax appearance temperature (WAT) of 149°F.

“The pipeline starts from the Mangala Processing Terminal (MPT) in Barmer and terminates at Bhogat, near Jamnagar.”

A heat tube supplies the heat required to maintain the correct temperature of the oil. It is welded to the side of the main line.
An 8in gas pipeline runs parallel to the main line. It is used to supply gas to the all the three dozen ground installations located at every 11.2-mile (18km) of distance along the pipeline. These installations ensure that the right temperature of pipeline is maintained.

The MDP is also insulated with 3.5in poly urethane foam (PUF) to prevent heat loss to the soil. Furthermore, the pipeline is wrapped with a high-density polyethylene (HDPE) jacket to make it water tight.

Three pigging stations are also provided for cleaning and inspection purposes. The three stations are located at the Viramgam terminal, Sanchore and Wankaner.

Contracts awarded for crude oil pipeline

The EPC contract to build the first phase of the MDP project was awarded to Larsen & Toubro (L&T) in February 2008. Engineering services for the project were provided by L&T Gulf, a joint venture of L&T and Gulf Interstate.

Detailed engineering design for the six kilometre-long offshore pipeline was undertaken by Intecsea. The routes of the pipeline and preliminary hydraulics for the project were developed by J P Kenny, a subsidiary of Wood Group.

In April 2011, QinetiQ was contracted to supply its OptaSense security system for the MDP project. The system will be used along the complete length of the pipeline.

Shell Hazira Port, a unit of Royal Dutch Shell, operates the terminal and owns 74% interest in the facility. Total Gaz Electricité France holds the remaining 26%.

In July 2010, Shell announced that the Hazira terminal would be open to use for other companies. Gujarat State Petroleum is expected to be one of the first few companies to use the terminal.

Construction and infrastructure

Construction of the LNG terminal was started in August 2001. The facility was completed in two phases in 2005 and 2006. The facility features an LNG re-gasification terminal with a design capacity of 5mtpa of LNG. Depending upon market demand, the capacity can be expanded to 10mtpa of LNG.

The facility also features two full-containment cryogenic tanks with a capacity of 160,000m³ each. The tanks have a diameter of 80m and a height of 40m. They can store LNG at a temperature of -165° C.

“Hazira was chosen as the location to build the terminal for several reasons.”

The two cryogenic tanks at the facility were constructed by setting up a 120m³ computerised concrete batching plant. Two 30m³ standby batching plants were also set up during construction. Two 75m high tower cranes with a capacity of 12.5t were used for the construction activities. The domes of the two towers were airlifted into position. Upon completion, the tanks were purged with nitrogen.

A 1.3km LNG receiving jetty is also part of the facility. The jetty can accommodate LNG carriers with a capacity of up to 145,000m³.

Contractors

The Hazira terminal was designed by Shell Global Solutions (SGS). SGS awarded an engineering, procurement and construction contract worth $330m to a joint venture between Tecnimont Group and Saipem Group. Tecnimont Group included Tecnimont, Sofregaz and Tecnimont ICB while Saipem Group included Saipem and Technigaz.

Punj Lloyd was awarded the contract for building two cryogenic tanks for the terminal. The company carried out the construction of the RCC wall of the tanks, erection and air lifting of the roofs, and insulation of the tank base. The company also carried out hydro testing of the pipelines and tanks.

The causeway and spurs of the terminal were constructed by Larsen & Toubro. Afcons constructed the terminal’s jetty and the building was constructed by Simplex.

Processing

The re-gasification process at the terminal involves heating of the super cool LNG to transform it back into gas. Heating is carried out using two types of heat exchangers. The first type of heat exchanger is an Open Rack Vapouriser (ORV).
“The Hazira terminal was designed by Shell Global Solutions.”

The ORV system consists of a number of thin pipes through which the LNG is pumped. Heated sea water is passed over the ORV system increasing the temperature of the LNG and thereby turning it into gas. The terminal is equipped with three ORVs of which one is a standby.

The second type of heat exchanger is known as the Submerged Combustion Vapouriser (SCV).

The SCV system consists of a large vessel containing water which is heated using gas. Pipes containing LNG pass through the vessel converting the LNG into gas.

Connection

The converted gas is sent through a 17km pipeline to the Mora Gas Hub. Owned and operated by Gujarat State Petronet, the Mora Gas Hub delivers gas to various industries such as steel mills.

Hazira terminal facilities

The Hazira terminal also includes a deep-water, multi-cargo port situated 25km from Surat. It has a protected harbour design with a 1,000m approach channel, a draft of 11.5m and a turning radius of 600m.

Site

Hazira was chosen as the location to build the terminal for several reasons. The area is located near key markets for gas and connected to the gas grid in Gujarat.

The site was also ideal for connection with the HBJ pipeline and the Dahej-Uran pipeline. These pipelines provide the terminal with access to markets such as Maharashtra, Gujarat, Rajasthan and the northern part of India.