ADNOC Gas And Indian Oil Corporation Finalise 14-Year LNG Supply Agreement Worth Up To $9 Billion

ADNOC Gas has finalised a 14-year sales and purchase agreement with Indian Oil Corporation Ltd (IndianOil). This deal involves exporting up to 1.2 million tonnes of liquefied natural gas (LNG) annually to India. The agreement, valued between $7 billion and $9 billion, marks a significant development in the collaboration between these two energy giants.

The first LNG deliveries under this agreement are set to commence in 2026. This contract transforms the previous Heads of Agreement into a formal sales and purchase agreement. ADNOC Gas aims to support India's goal of increasing gas to 15% of its primary energy mix by 2030.

Fatema Al Nuaimi, CEO of ADNOC Gas, highlighted the importance of this partnership. She stated, "This agreement strengthens our long-standing partnership with IndianOil and is a testament to the dynamic and robust energy ties between the UAE and India." ADNOC Gas is committed to being a reliable supplier of lower-carbon gas.

The Das Island liquefaction facility will supply the LNG for this agreement. With a production capacity of up to 6 million tonnes per annum, Das Island is one of the world's longest-operating LNG plants. Since its inception, it has shipped over 3,500 LNG cargoes globally.

This new deal aligns with ADNOC Gas' strategy to broaden its customer base. Over the past two years, they have signed several LNG agreements ranging from 0.4 MTPA to 1.2 MTPA for durations up to 14 years. These contracts reinforce their position as a leading supplier in Asia's growing markets.

ADNOC Gas continues to focus on expanding its reach in key growth markets like India. The company aims to provide reliable and lower-carbon LNG solutions that meet the increasing energy demands in these regions.

This agreement not only strengthens ties between UAE and India but also supports India's energy diversification efforts. By securing long-term LNG supplies, IndianOil can enhance its energy portfolio while contributing to India's sustainable energy goals.

With inputs from WAM