Business

ADNOC to Supply LNG to Indian Oil Corporation

Abu Dhabi National Oil Company (ADNOC) on Wednesday announced that it has signed a 15-year Sales and Purchase Agreement (SPA) with Indian Oil Corporation Ltd (IndianOil), India’s largest integrated and diversified energy company, to supply of 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) sourced primarily from ADNOC’s lower-carbon Ruwais LNG project.

The 15-year SPA converts a previous Heads of Agreement into a definitive agreement and underscores ADNOC’s expanded global footprint, particularly across the high-demand Asian LNG market, and reinforces its role as a reliable global supplier of LNG.

Under the terms of the SPA, LNG cargoes can be delivered to any port across India, supporting the country’s growing energy needs and enhancing its energy security, ADNOC said in an official release.

By 2029, IndianOil is set to become ADNOC’s largest LNG customer, with a total offtake of 2.2 MTPA, comprising 1.2 MTPA from ADNOC’s Das Island operations and 1 MTPA from the Ruwais LNG project.

ADNOC’s Senior Vice President for Marketing Rashid Khalfan Al Mazrouei said that 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,” he added.

Ruwais LNG Project

ADNOC’s Ruwais LNG project, currently under development in Al Ruwais Industrial City in Abu Dhabi, is expected to commence commercial operations in 2028. To date, over 8 MTPA of the project’s 9.6 MTPA production capacity has been committed to international customers through long-term agreements, underscoring strong global demand for ADNOC’s lower-carbon LNG.

The SPA highlights the success of the Comprehensive Economic Partnership Agreement (CEPA) signed between the UAE and India in 2022, which continues to foster deeper bilateral trade and energy cooperation.

The Ruwais LNG facility will be the first in the Middle East to run on clean power, positioning it among the lowest-carbon intensity LNG plants globally. It will leverage advanced technologies, including AI, to enhance safety, efficiency, and sustainability.

ADNOC Gas announced in November 2024 that it was expecting to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, in the second half of 2028. Upon completion, the project, comprising two 4.8 MTPA liquefaction trains with a combined capacity of 9.6 MTPA, will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 MTPA.

Global Business Magazine

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