ADNOC signed a long-term Heads of Agreement (LNG agreement) with Indian Oil Corporation Ltd (IOCL), an integrated and diversified energy company, for the delivery of one million metric tons per annum (mmtpa) of liquefied natural gas (LNG).
The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi, and is expected to start commercial operations in 2028. Under the fifteen-year agreement, LNG cargoes will be shipped to IOCL’s destination ports in India.
Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing said, “India is an important, strategic partner of the UAE and this agreement underscores ADNOC’s commitment to delivering secure, lower-carbon energy to support the country’s energy security. The agreement also highlights confidence in the Ruwais LNG project, which is an integral part of ADNOC’s strategy to expand our global LNG footprint to meet growing demand today while helping the world transition to a cleaner energy future”.
The agreement further strengthens ADNOC’s position in India’s fast-growing energy market. By 2029, IOCL is expected to become ADNOC’s biggest LNG customer, with a total offtake of 2.2 mmtpa, comprising 1.2 mmtpa from Das Island and one mmtpa from Ruwais LNG.
The LNG supply agreement highlights the success of the Comprehensive Economic Partnership Agreement (CEPA), signed by the UAE and India in 2022, in strengthening bilateral trade cooperation between the two nations.
As per the press release, the agreement is one of several long-term LNG sales commitments ADNOC has signed with international partners for Ruwais LNG for over 70% of the project’s total production capacity.
