ADNOC Signs Long-Term LNG Agreement with Indian Oil Corporation
Abu Dhabi National Oil Co. (ADNOC) has finalized a long-term agreement to supply liquefied natural gas (LNG) to Indian Oil Corporation, India’s largest integrated energy company. The deal involves delivering 1 million metric tons per annum (mmtpa) of LNG, primarily from ADNOC’s Ruwais LNG project, over the next 15 years.
The Ruwais LNG facility, currently under development in Al Ruwais Industrial City, Abu Dhabi, is slated to commence commercial operations in 2028. Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President for Marketing, emphasized that the agreement underscores ADNOC’s dedication to providing secure, lower-carbon energy, strengthening its position in India’s burgeoning energy market.
This agreement builds on the Comprehensive Economic Partnership Agreement (CEPA) signed by the UAE and India in 2022, enhancing bilateral trade relations. By 2029, IndianOil is expected to be ADNOC’s largest LNG customer, with a total offtake of 2.2 mmtpa, including 1.2 mmtpa from Das Island and 1 mmtpa from Ruwais LNG.
The Ruwais LNG project, which will feature two 4.8-mtpa liquefaction trains for a total capacity of 9.6 mtpa, will significantly increase ADNOC’s LNG production capacity, making it the first LNG export facility in the Middle East and Africa to operate on clean power. The project aims to be one of the lowest-carbon intensity LNG plants globally, integrating artificial intelligence and advanced technologies to enhance safety, reduce emissions, and boost efficiency.
In August, ADNOC also secured a similar agreement with Japan’s Osaka Gas for up to 0.8 mmtpa of LNG from Ruwais LNG. Additionally, in July, ADNOC welcomed BP plc, Mitsui & Co. Ltd., Shell PLC, and TotalEnergies SE, each acquiring a 10 percent stake in the Ruwais LNG project, with ADNOC retaining a 60 percent ownership, pending regulatory approvals.
