Abu Dhabi National Oil Company (ADNOC) has finalized a 15-year Sales and Purchase Agreement (SPA) with Indian Oil Corporation Ltd (IOCL) for the supply of one million tons per annum (mtpa) of liquefied natural gas (LNG). The LNG will primarily come from ADNOC’s lower-carbon Ruwais LNG project, currently under development. The long-term deal converts an earlier heads of agreement into a definitive contract. It strengthens ADNOC’s strategic energy partnership with India and reinforces its position as a reliable global LNG supplier.
Flexible Delivery Across India
Under the terms of the SPA, LNG cargoes can be delivered to any port across India. This gives IndianOil greater flexibility to meet its growing energy demand. By 2029, IOCL will become ADNOC’s largest LNG customer, securing 2.2 mtpa of LNG. This includes 1.2 mtpa from ADNOC’s Das Island operations and 1 mtpa from the Ruwais LNG project.
Strengthening UAE-India Energy Ties
Rashid Khalfan Al Mazrouei, ADNOC’s SVP of 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.”
Ruwais LNG Project: A Low-Carbon Milestone
ADNOC will begin commercial operations of the Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, in 2028. It will launch the Middle East’s first LNG facility powered entirely by clean energy, creating one of the lowest carbon-intensity LNG plants globally. The facility will use advanced technologies, including AI, to enhance safety, operational efficiency, and sustainability. So far, international customers have committed to over 8 mtpa of the project’s 9.6 mtpa production capacity through long-term agreements.
Boosting ADNOC’s LNG Capacity
As reported by gulfbusiness.com, the Ruwais project will feature two liquefaction trains of 4.8 mtpa each. Once completed, it will double ADNOC Gas’ current LNG capacity to around 15 mtpa. In November 2024, ADNOC Gas announced plans to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost. The acquisition will take place during the second half of 2028, further consolidating ADNOC Gas’s role in the LNG value chain.
