The Abu Dhabi National Oil Company (ADNOC) has signed a 15-year Sales and Purchase Agreement with Indian Oil Corporation Ltd (IndianOil) for the supply of one million tonnes per annum of liquefied natural gas. The LNG will be primarily sourced from ADNOC’s Ruwais LNG project, currently under development in Al Ruwais Industrial City. The agreement formalizes a previously announced Heads of Agreement between the two entities and reinforces ADNOC’s presence in the Asian LNG market.
Under the terms of the deal, LNG cargoes will be deliverable to any port in India, supporting the country’s rising demand for natural gas and enhancing its energy security through diversified supply channels. IndianOil is India’s largest integrated energy company, operating across refining, petrochemicals, and fuel marketing. The agreement is set to make IndianOil ADNOC’s largest LNG customer by 2029, with a combined offtake of 2.2 million tonnes per annum. This includes 1.2 million tonnes per annum from ADNOC’s Das Island facilities and 1 million tonnes from the upcoming Ruwais LNG project.
ADNOC’s Ruwais LNG facility is designed with a production capacity of 9.6 million tonnes per annum and will feature two 4.8 million tonne liquefaction trains. The plant is scheduled to begin commercial operations in 2028. Once operational, it will more than double ADNOC Gas’s existing LNG production capacity from 6 million tonnes to approximately 15 million tonnes per annum. The facility is planned to be the first LNG export terminal in the Middle East powered entirely by clean energy.
ADNOC finalizes LNG deal with IndianOil
It will incorporate advanced digital and automation technologies, including artificial intelligence, to improve operational safety and efficiency. To date, over 8 million tonnes per annum of the plant’s capacity has been contracted to international buyers under long-term agreements. Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC, stated that the agreement reflects ongoing energy collaboration between the UAE and India. The two countries have expanded economic ties in recent years, particularly since the signing of the Comprehensive Economic Partnership Agreement in 2022.
ADNOC Gas, a listed subsidiary of ADNOC, announced in November 2024 its intention to acquire a 60 percent stake in the Ruwais LNG project from ADNOC at cost. The transaction is expected to be completed in the second half of 2028, aligning with the project’s expected commissioning timeline. India is the world’s fourth-largest LNG importer, and natural gas plays a central role in its strategy to reduce carbon emissions in power generation and industrial activity. ADNOC’s agreement with IndianOil is one of several recent LNG supply deals secured by the company with Asian buyers, reflecting sustained regional demand for gas amid ongoing energy transitions.
The Ruwais project is part of ADNOC’s broader effort to grow its lower-carbon energy portfolio while meeting global energy demand. The facility will join ADNOC’s existing LNG export operations on Das Island, which have been in operation for several decades. The 15-year contract strengthens ADNOC’s long-term commercial ties in Asia and reinforces the UAE’s role as a stable and reliable energy supplier to global markets. – By MENA Newswire News Desk.