GAIL India Ltd. has inked a long-term LNG purchase agreement with Abu Dhabi National Oil Co., or ADNOC, for the purchase of 0.5 million metric tonnes per annum LNG.
"This is harmonious to the Memorandum of Understanding dated Oct. 30, 2022, between the two parties, wherein they will explore opportunities, including the purchase of LNG from ADNOC by GAIL," the exchange filing issued on Monday said.
This will help strengthen the cultural and economic bonds between India and the United Arab Emirates and aid India's rising energy security requirements, the filing said.
The delivery of LNG will commence in 2026, for a duration of 10 years across India, it said.
“This long-term LNG deal with ADNOC by GAIL will contribute to bridging the gap in India's demand and supply of natural gas and will open more avenues of strategic partnership between GAIL and ADNOC in other areas of the energy domain,” said Sandeep Kumar Gupta, chairman and managing director of GAIL.
Gupta also said that the long-term LNG transaction will help the government of India achieve its objective of enhancing the share of natural gas in India's energy basket to 15%.
GAIL India reported an increase in revenue and profit in the third quarter of fiscal 2024.
GAIL India Q3 FY24 Key Highlights (Consolidated, QoQ)
Revenue at Rs 34,697.78 crore vs Rs 32,985.71 crore, up 5.19%.
Ebitda at Rs 4,208.3 crore vs Rs 3,580.23 crore, up 17.54%.
Margin at 12.12% vs 10.85%, up 127 bps.
Net profit at Rs 3,193.34 crore vs Rs 2,442.18 crore, up 30.75%
GAIL is India's largest natural gas company. It commands around 70% of the market share in gas transmission and has a gas trading share of over 50% in India.
Shares of GAIL India closed 3.81% higher at Rs 171.70 apiece, as compared with a 1.76% rise in the benchmark BSE Sensex.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
