New Delhi: The Abu Dhabi National Oil Company (ADNOC) has entered into a 15-year agreement to supply Indian Oil with 1 million metric tons of liquefied natural gas (LNG) annually, according to a statement from the Abu Dhabi Media Office. The LNG will primarily come from ADNOC’s Ruwais LNG project.
ADNOC is positioning gas and LNG as key components of its future growth strategy, alongside renewable energy and petrochemicals. The company aims to expand its presence in the LNG market, competing with regional giants like Qatar and Saudi Arabia. As part of its broader LNG strategy, ADNOC has awarded 10% stakes in the Ruwais project to Shell, BP, TotalEnergies, and Japan’s Mitsui. The Ruwais project, which is expected to begin production in late 2028, will consist of two plants, each producing 4.8 million tons of LNG annually. This will boost ADNOC’s total LNG capacity to 15 million tons per annum.
ADNOC has already signed agreements with various global companies for LNG supply from Ruwais, including Shell, Mitsui, Osaka Gas, China’s ENN, and Germany’s EnBW and SEFE.
This marks the third LNG supply agreement between ADNOC and Indian state-owned firms in just over a year. In July 2022, ADNOC Gas signed a deal with Indian Oil for up to 1.2 million tons of LNG annually, valued between $7 billion and $9 billion over a 14-year term. Additionally, GAIL (India) signed a deal with ADNOC Gas for the annual purchase of 0.5 million tons of LNG for 10 years, starting in 2026.
The latest agreement was signed during the visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to India. Long-term LNG contracts such as this help stabilise the volatile spot market, offering a reliable and affordable supply.
In a separate development, ADNOC and Indian Strategic Petroleum Reserves (ISPRL) signed a memorandum of understanding to explore further opportunities for crude oil storage in India. The two sides will also review their existing storage and management agreement at the Mangalore Cavern, where ADNOC has been involved since 2018.
Additionally, a production concession agreement was signed between Urja Bharat, a joint venture of Indian Oil and Bharat PetroResources, and ADNOC for Abu Dhabi’s Onshore Block 1. This agreement allows Urja Bharat to explore oil and gas reserves in the block and bring crude oil to India.
During the visit, Indian oil minister Hardeep Singh Puri and ADNOC Group CEO Sultan Ahmed Al Jaber held discussions on expanding the energy partnership between India and the UAE, with key agreements signed during the meeting. /BI
