The UAE’s Abu Dhabi National Oil Company (ADNOC) has signed a long-term liquefied natural gas (LNG) sales and purchase agreement (SPA) with the state-owned Indian Oil Corporation.
The 15-year deal entails the supply of 1 million tonnes per annum (mtpa) of LNG sourced primarily from ADNOC’s lower-carbon Ruwais LNG project. This turns a previous heads of agreement (HoA) between the duo into a definitive agreement.
Under the terms of the SPA, LNG cargoes can be delivered to any port across India, which the UAE player believes will support the country’s growing energy needs and enhance its energy security.
Rashid Khalfan Al Mazrouei , ADNOC’s Senior Vice President, Marketing, said: “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.”
The Indian player’s total offtake of 2.2 mtpa – 1.2 mtpa from ADNOC’s Das Island facility and 1 mtpa from the Ruwais LNG project, is set to make it ADNOC’s largest LNG customer by 2029, the UAE firm noted.
ADNOC previously inked an LNG supply deal with another Indian player, Hindustan Petroleum Corporation Limited (HPCL). Under this deal, LNG sourced from Das Island will be delivered to the Chhara LNG terminal, from which HPCL will distribute it further to customers.
Commercial operations at the Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, are scheduled to start in 2028. The project will comprise two 4.8 mtpa liquefaction trains, for a combined capacity of 9.6 mtpa.
The UAE player says over 8 mtpa of this has been committed to international customers through long-term agreements. These entail a long-term SPA with Japan’s Mitsui & Co., following those with Osaka Gas , as well as Malaysia’s Petronas , and two German players, EnBW and SEFE .