India-UAE strengthen LNG ties with $7-9 billion gas deal

ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has signed a long-term agreement with Indian Oil Corporation (IOC) to supply liquefied natural gas (LNG). This multi-year deal, valued between $7 billion and $9 billion, strengthens the energy partnership between the United Arab Emirates (UAE) and India.

The agreement covers a 14-year period, during which ADNOC Gas will supply up to 1.2 million tons of LNG per year to Indian Oil. The first deliveries under this contract are scheduled to begin in 2026. This agreement finalizes the previous understanding between the two companies and officially converts it into a long-term supply contract.

ADNOC Gas will supply the LNG from its Das Island facility, which has the capacity to produce up to 6 million tons of LNG per year. Das Island is one of the world’s oldest LNG plants and has been in operation for decades. Since its launch, it has shipped more than 3,500 LNG cargoes to different parts of the world.

The company sees this deal as a significant step in its commitment to being a reliable supplier of lower-carbon gas. The agreement also aligns with India’s plans to increase the share of natural gas in its energy mix to 15% by 2030.

Fatema Al Nuaimi, CEO of ADNOC Gas, commented on the deal, saying, “This agreement strengthens our long-standing relationship with Indian Oil and highlights the strong energy ties between the UAE and India. As a responsible and reliable supplier of natural gas, ADNOC Gas is proud to support India’s efforts to use more clean energy.”

This deal is part of ADNOC Gas’ broader strategy to expand its global customer base. In the past two years, the company has signed multiple LNG supply contracts, ranging from 0.4 million to 1.2 million tons per year, with contract durations of up to 14 years. These agreements have reinforced ADNOC Gas’ role as a key supplier of LNG, particularly to growing markets in Asia, such as India.

Looking ahead, ADNOC Gas plans to further increase its LNG production. By the second half of 2028, it will take over ADNOC’s entire stake in the Ruwais LNG project. This expansion will boost the company’s LNG processing capacity to 15.6 million tons per year.

This latest agreement with Indian Oil marks another important milestone in ADNOC Gas’ journey, securing its position as a major LNG supplier while strengthening energy ties between the UAE and India.

Feb. 15, 2025 12:47 p.m. 117

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