Adnoc & IndianOil Sign 15 Year LNG Supply Deal

Abu Dhabi National Oil Company (Adnoc) has inked a 15-year deal to deliver 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) to Indian Oil Corporation (IndianOil), boosting the UAE's energy cooperation with India.

The LNG will be supplied from Adnoc's lower-carbon Ruwais LNG project in Abu Dhabi Al Ruwais Industrial City, which is due to start commercial operations in 2028. Cargoes under the agreement will be shipped to Indian ports to serve the country's increasing energy needs, state news agency WAM said.

"India is a strategic energy partner of ours, and this deal is another milestone in our long-term relationship. With the Ruwais LNG project, we are driving lower-carbon energy solutions while ensuring reliable supplies to meet demand in the future." stated an Adnoc spokesperson.

Key Highlights:

• Adnoc Signs 15-Year LNG Supply Deal With IndianOil
• IndianOil to Become Adnoc’s Largest LNG Customer by 2029
• UAE and India Energy Ties Deepen With Ruwais LNG Agreement

The deal makes IndianOil Adnoc's biggest LNG customer by 2029, with combined offtake of 2.2 mtpa to 1.2 mtpa from Adnoc's current Das Island facilities and 1 mtpa from Ruwais.

So far, over 8 mtpa of Ruwais' 9.6 mtpa capacity has already been booked under long-term contracts with international buyers.

Also Read: Adnoc will be Supporting Domestic Production with its Dh6 billion Agreement

"This transaction will be instrumental in securing India's energy security while strengthening our cooperation with the UAE under the CEPA umbrella," an IndianOil official said.

The long-term agreement comes on the heels of other recent Adnoc Gas deals with Indian consumers, such as a 0.5 mtpa supply to Hindustan Petroleum and a 10-year deal with Gail India.