ADNOC Gas, the natural gas division of the Abu Dhabi National Oil Company, has announced a $7–9bn, 14-year liquified natural gas (LNG) supply agreement with Indian Oil Corporation. ADNOC Gas will supply up to 1.2 million tonnes of LNG per year to India.
The deal was signed as part of Indian Prime Minister Narendra Modi’s official visit to the United Arab Emirates (UAE) last week, according to a statement published by ADNOC on Tuesday.
The deal will “further strengthen the longstanding partnership with Indian Oil Corporation,” ADNOC CEO Ahmed Alebri said in a statement from the company.
“We look forward to expanding our collaboration and take pride in the knowledge that ADNOC Gas’ LNG exports will further support the development of Indian Oil Corporation and contribute to India’s growth story.”
India and the UAE have signed a Comprehensive Economic Partnership Agreement that excepts them from the 2.5% import tax that typically applies to LNG.
ADNOC seeks to expand its LNG markets following Russia’s invasion of Ukraine and the reduced supply of Russian gas.
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The company described the deal as “a significant milestone for ADNOC Gas as it expands its global reach, reinforcing its position as a global LNG export partner of choice”.
Indian Oil Corporation also signed an LNG import deal with French energy major TotalEnergies; both deals will commence in 2026.
Both deals were announced earlier in the week, but Indian Oil gave little detail as to the value of the deals.
India is the fourth-largest buyer of LNG globally. According to a data company, in April 2023, India’s LNG imports rose to 2.02 million tonnes from 1.94 million tonnes in March and from 1.70 million tonnes in April 2022.