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Indian Oil Corporation (IOC), the country’s largest oil firm, has signed a $7-9 billion long-term agreement with ADNOC Gas to import liquefied natural gas (LNG) from the United Arab Emirates. The 14-year deal, signed on the sidelines of India Energy Week, will see IOC receive up to 1.2 million tonnes per annum (mtpa) of LNG from 2026. The LNG will be supplied from ADNOC Gas’ Das Island liquefaction facility, which has a production capacity of 6 mtpa. ADNOC Gas CEO Fatema Al Nuaimi emphasized the agreement’s significance, calling it a testament to the strong energy ties between the UAE and India. “This deal aligns with India’s goal of increasing natural gas to 15% of its primary energy mix by 2030,” she said. The agreement builds on previous commitments between ADNOC Gas and IOC, converting a Heads of Agreement signed last year into a formal sales and purchase agreement (SPA). It also expands ADNOC’s customer base in Asia, reinforcing its role as a leading LNG supplier. Growing LNG Trade Between India and UAE This is the second LNG supply agreement that ADNOC Gas has signed with an Indian company at India Energy Week. The firm also inked a deal with Bharat Petroleum Corporation Ltd (BPCL) to supply 2.4 million tonnes of LNG over five years starting April 2025, with an option to extend for another five years. Additionally, French energy major TotalEnergies has signed a 10-year agreement to supply 400,000 tonnes of LNG annually to Gujarat State Petroleum Corporation Ltd (GSPC) starting in 2026. The LNG will be sourced from TotalEnergies’ global portfolio and delivered to terminals on India’s west coast, catering to industrial, domestic, and transportation sectors. IOC has been actively securing LNG supplies, having signed a deal last year to receive 800,000 tonnes of LNG annually from TotalEnergies for a decade starting in 2026. The company can import the gas at its terminals in Dahej, Gujarat, or Ennore, Tamil Nadu. Expanding India’s Energy Portfolio Apart from LNG agreements, India Energy Week also saw other key energy deals: BPCL signed an optional crude import contract with Brazil’s Petrobras for up to 6 million barrels, strengthening India’s energy security and supply diversification. IOC signed India’s first-ever LNG export deal with Yogya Holdings Nepal, agreeing to supply 1,000 tonnes of LNG annually via cryogenic trucks from Dhamra Terminal in Odisha. BPCL partnered with Eco Wave Power to develop India’s first wave energy pilot project in Mumbai, aiming to harness wave energy as a sustainable resource. BPCL signed an MoU with the National Sugar Institute (NSI), Kanpur, to explore bioethanol production from sweet sorghum, focusing on scaling up technology and capacity-building for farmers. These agreements mark significant steps toward securing India’s energy needs while expanding its role in the global LNG and renewable energy markets. |
