ADNOC Signs 15-Year LNG Supply Deal With Indian Oil Company

Post by : Mumtaaz Qadiri

The Abu Dhabi National Oil Company (ADNOC) has announced a major new agreement with India’s largest energy company, Indian Oil Corporation Ltd (IndianOil). This deal involves the supply of liquefied natural gas (LNG) over a long period of 15 years.

The supply will mainly come from ADNOC’s upcoming Ruwais LNG project, which is designed to produce lower-carbon LNG. The agreement marks another milestone in the growing partnership between the United Arab Emirates (UAE) and India, especially in the energy sector.

Converting Heads Of Agreement Into A Final Deal

The new 15-year Sales and Purchase Agreement (SPA) officially turns a previously signed Heads of Agreement into a legally binding contract. By doing so, it demonstrates ADNOC’s commitment to expanding its global footprint, especially across Asia where LNG demand is rapidly increasing.

This step reinforces ADNOC’s position as a reliable and secure global supplier of LNG, able to meet the needs of fast-growing economies like India.

Details Of The LNG Supply

According to the agreement, ADNOC will supply IndianOil with 1 million tonnes per annum (mtpa) of LNG. These supplies can be delivered to any port in India, giving flexibility and ensuring that energy reaches the country wherever it is needed most.

This arrangement supports India’s growing energy requirements and provides greater energy security for the nation’s industries and households.

IndianOil As ADNOC’s Largest Customer

By 2029, IndianOil will become ADNOC’s largest LNG customer. The company will receive a total of 2.2 mtpa of LNG, made up of 1.2 mtpa from ADNOC’s existing Das Island operations and 1 mtpa from the new Ruwais LNG project.

This shows how the partnership between the two companies is expanding and how India is becoming one of ADNOC’s most important international partners.

Statement From ADNOC Official

Rashid Khalfan Al Mazrouei, ADNOC’s Senior Vice President of Marketing, highlighted the importance of the deal. He explained that the agreement reflects the strong energy relations between the UAE and India.

He also noted that the Ruwais LNG project will provide lower-carbon gas that can meet global demand, help fuel industries, and power homes. This demonstrates ADNOC’s role not only as a supplier but also as a company contributing to a cleaner energy future.

The Ruwais LNG Project Overview

The Ruwais LNG project is currently being developed in Al Ruwais Industrial City in Abu Dhabi. It is expected to begin commercial operations in 2028.

This project represents one of ADNOC’s largest investments in LNG and will play a key role in meeting international demand for lower-carbon energy. Its design and technologies will ensure it produces LNG with one of the lowest carbon intensities in the world.

Strong Demand For Ruwais LNG

Global customers have shown strong interest in ADNOC’s upcoming LNG supplies. To date, more than 8 mtpa of the project’s total capacity of 9.6 mtpa has already been committed through long-term contracts.

This level of demand demonstrates the trust that international buyers have in ADNOC as a reliable supplier. It also reflects the growing demand for cleaner energy across the world.

The Role Of UAE-India CEPA Agreement

The long-term LNG supply deal also highlights the success of the Comprehensive Economic Partnership Agreement (CEPA), signed between the UAE and India in 2022.

This agreement has strengthened trade relations between the two nations and opened the door for closer energy cooperation. The new LNG contract is a clear example of how CEPA is creating long-term benefits for both countries.

First Clean-Powered LNG Facility In The Middle East

One of the unique features of the Ruwais LNG project is that it will be the first LNG facility in the Middle East to be powered by clean energy.

This means it will have one of the lowest carbon footprints in the global LNG industry. ADNOC plans to use advanced technologies, including artificial intelligence (AI), to improve safety, efficiency, and sustainability at the facility.

Expansion Of ADNOC Gas Capacity

ADNOC Gas, which manages ADNOC’s gas operations, announced in November 2024 that it plans to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost in the second half of 2028.

Once the project is completed, the facility will have two liquefaction trains, each with a capacity of 4.8 mtpa. This gives the project a combined production capacity of 9.6 mtpa.

This expansion will more than double ADNOC Gas’ current LNG production capacity, increasing it to around 15 mtpa. Such growth will make ADNOC one of the largest LNG suppliers in the region.

Supporting Global Energy Security

LNG is playing an increasingly important role in ensuring global energy security. Countries around the world are turning to LNG as a cleaner alternative to coal and oil.

Through the Ruwais LNG project and agreements like the one with IndianOil, ADNOC is strengthening its role in meeting this demand. This also contributes to reducing global carbon emissions by supplying lower-carbon gas.

Importance For India’s Energy Security

For India, the deal is crucial in supporting its fast-growing energy needs. As one of the world’s most populous nations with a rapidly expanding economy, India requires secure and stable energy supplies.

By partnering with ADNOC, IndianOil ensures that it has a reliable source of LNG for the next 15 years. This contributes to India’s energy security and supports its development goals.

Bilateral Ties Beyond Energy

The deal also demonstrates the broader economic and political relationship between the UAE and India. Beyond energy, both countries are working together in trade, investment, and innovation.

The LNG agreement strengthens this partnership by creating long-term economic ties that benefit both nations and support regional stability.

The signing of the SPA between ADNOC and IndianOil marks a new chapter in their partnership. In the coming years, more collaboration is expected in clean energy, advanced technology, and trade.

For ADNOC, the Ruwais LNG project positions it as a leader in providing lower-carbon energy to the world. For India, the agreement ensures long-term energy security to power industries, businesses, and homes.

The 15-year LNG supply agreement between ADNOC and IndianOil is not just a business contract but a strategic step in strengthening the UAE-India energy partnership. It supports India’s growing energy needs, enhances its security, and aligns with global efforts to move toward cleaner fuels.

With the Ruwais LNG project soon to become one of the world’s lowest-carbon LNG facilities, ADNOC is set to play a leading role in shaping the future of energy. This agreement reflects the trust, cooperation, and shared goals that connect the UAE and India, pointing toward a future of mutual growth and sustainable energy solutions.

LNG supply deal,ADNOC IndianOil partnership, Energy security cooperation