Adnoc Secures 15-Year LNG Supply Deal with Indian Oil Corp.

The Abu Dhabi National Oil Company (Adnoc) has finalized a significant 15-year liquefied natural gas (LNG) supply agreement with Indian Oil Corporation, marking a strategic move to bolster its export capacity. Under this deal, Adnoc will deliver 1 million tons of LNG annually to the Indian state-owned entity, primarily sourced from the upcoming project at Ruwais, as outlined in a statement released on Wednesday.

This recent agreement follows a preliminary contract signed in September and complements another deal that allows Indian Oil to receive an additional 1.2 million tons of LNG each year from Adnoc’s operations at Das Island. These contracts position Indian Oil as Adnoc’s largest LNG customer by 2029, reflecting the UAE company’s strategy to secure long-term partnerships for its expanding export capabilities.

Strategic Expansion and Future Operations

The expanding relationship with Indian Oil is part of a broader strategy by Adnoc to enhance its LNG export operations, which include agreements with various buyers across markets from Germany to Malaysia. For India, these deals align with the country’s objective to increase the share of natural gas in its energy mix significantly by the end of the decade. Despite ongoing challenges related to infrastructure bottlenecks, these agreements are pivotal for India’s energy strategy.

Adnoc’s Ruwais project is expected to commence commercial operations in 2028, which will more than double Adnoc’s LNG production capacity to 15 million tons per year. The company has already committed over 8 million tons of the project’s total capacity of 9.6 million tons annually to international customers through long-term contracts. This level of commitment underscores Adnoc’s ambition to solidify its position in the global LNG market.

Additionally, Adnoc Gas Plc announced last year that it anticipates acquiring a 60% stake in the Ruwais project from its parent company, Adnoc, at cost in the latter half of 2028. This acquisition is expected to further strengthen the company’s foothold in the LNG sector and enhance its operational efficiency.

As global demand for cleaner energy sources continues to rise, Adnoc’s strategic agreements with major players such as Indian Oil are indicative of the shifting dynamics in the energy market. The focus on LNG not only supports India’s energy diversification efforts but also positions Adnoc as a key player in meeting international energy needs in the years to come.