ADNOC signs 15-year LNG supply deal with IndianOil
ADNOC announced a 15-year Sales and Purchase Agreement (SPA) with Indian Oil Corporation Ltd (IndianOil), India’s largest integrated energy company, for the supply of one million tonnes per annum (mtpa) of liquefied natural gas (LNG). The gas will be sourced primarily from ADNOC’s lower-carbon Ruwais LNG project.
The SPA formalises a previous Heads of Agreement and reinforces ADNOC’s role as a reliable supplier to the fast-growing Asian LNG market. Under the contract, cargoes can be delivered to any port in India, helping to meet the country’s rising energy demand and strengthen energy security.
By 2029, IndianOil will become ADNOC’s largest LNG customer, with a total annual offtake of 2.2 mtpa. This will comprise 1.2 mtpa from ADNOC’s Das Island operations and 1 mtpa from the Ruwais project.
Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing, said: “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.”
The Ruwais LNG facility, now under development in Al Ruwais Industrial City, Abu Dhabi, is due to begin commercial operations in 2028. Over 8 mtpa of its planned 9.6 mtpa production capacity has already been allocated to international customers under long-term agreements, reflecting strong global appetite for ADNOC’s lower-carbon LNG.
The deal also reflects the success of the Comprehensive Economic Partnership Agreement (CEPA) signed by the UAE and India in 2022, which has deepened bilateral trade and energy cooperation.
The Ruwais plant will be the first LNG facility in the Middle East to run on clean power, placing it among the lowest carbon-intensity LNG producers globally. It will employ advanced technologies, including artificial intelligence, to boost safety, efficiency and sustainability.
In November 2024, ADNOC Gas announced plans to acquire ADNOC’s 60 per cent stake in the Ruwais project at cost in the second half of 2028. The project, comprising two liquefaction trains with a combined capacity of 9.6 mtpa, will more than double ADNOC Gas’ current operated LNG production capacity to around 15 mtpa.
