ADNOC And IndianOil Finalise 15-Year LNG Supply Agreement To Enhance Energy Security

ADNOC has finalised a 15-year Sales and Purchase Agreement (SPA) with Indian Oil Corporation Ltd (IndianOil), India's leading energy firm. This agreement involves the supply of 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from ADNOC’s Ruwais LNG project. The SPA, which formalises a previous Heads of Agreement, highlights ADNOC's growing presence in the Asian LNG market and its commitment as a dependable global LNG supplier.

The SPA allows for LNG deliveries to any port in India, supporting the nation's increasing energy requirements and boosting its energy security. By 2029, IndianOil is expected to become ADNOC’s largest LNG customer, with a total offtake of 2.2 mtpa. This includes 1.2 mtpa from ADNOC’s Das Island operations and 1 mtpa from the Ruwais project.

ADNOC's Ruwais LNG project is under development in Al Ruwais Industrial City, Abu Dhabi, with commercial operations anticipated to start in 2028. Currently, over 8 mtpa of its 9.6 mtpa production capacity has been secured through long-term agreements with international clients, reflecting strong global demand for ADNOC’s lower-carbon LNG.

The Ruwais facility will be the first in the Middle East powered by clean energy, making it one of the lowest-carbon intensity LNG plants worldwide. It will utilise advanced technologies like AI to improve safety, efficiency, and sustainability.

The SPA signifies the success of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India signed in 2022. This agreement continues to enhance bilateral trade and energy cooperation between the two nations.

Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President of Marketing, stated: "This long-term agreement with IndianOil underscores the robust energy relations between the UAE and India. Through our world-class Ruwais LNG Project, ADNOC will continue to provide more lower-carbon gas to meet growing global demand, fuel industries and power homes."

Future Expansion Plans

In November 2024, ADNOC Gas announced plans to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost by late 2028. Once completed, this project will feature two liquefaction trains each with a capacity of 4.8 mtpa, doubling ADNOC Gas’ current operated LNG production capacity to approximately 15 mtpa.

This expansion aligns with ADNOC's strategy to meet rising global demand for cleaner energy solutions while reinforcing its position as a key player in the international LNG market.

With inputs from WAM