Indian state-run energy firms Indian Oil Corp. (IOCL) and Gail are in talks with Abu Dhabi National Oil Company (ADNOC) for long-term LNG supply contracts. The discussions are at a fairly advanced stage, Mint reported on January 26 quoting India’s ambassador to the UAE Sunjay Sudhir.
The South Asian country is holding talks with the UAE to work out a mechanism for long-term offtake from an upcoming LNG plant in Fujairah, the newspaper reported.
“Two of our companies, Gail and IOCL are in discussions with ADNOC for long-term LNG contracts. Right now, as we speak, discussions have progressed very, very far. And it’s just a question of getting the right numbers. We are very hopeful of concluding it soon," said Sudhir.
Gail and ADNOC in November last year signed a MoU to explore collaboration opportunities in LNG supply and decarbonisation.
ADNOC's Fujairah project – comprising two 4.8mn metric tons/year LNG trains – is expected to increase the state-run company's LNG production capacity by 9.6mn mt/yr, as it looks to respond to the growing global demand for natural gas.
ADNOC has appointed US-based engineers McDermott International as the design contractor.
The design stage is expected to be followed by the award of an EPC contract in 2023.