UAE's ADNOC Gas on July 18 announced a 14-year supply agreement with India's state-run Indian Oil Corporation (IOCL) to export up to 1.2mn metric tons/year of LNG. The deal is valued between USD 7bn to USD 9bn.
Commenting on the agreement, Ahmed Alebri, CEO of ADNOC Gas, said: “We are pleased to announce this long-term LNG sale, further strengthening the longstanding partnership with IOCL. We look forward to expanding our collaboration and take pride in the knowledge that ADNOC Gas’ LNG exports will further support the development of IOCL and contribute to India’s growth story.”
Earlier this year, ADNOC formed ADNOC Gas as a new entity responsible for natural gas processing, operations, and marketing. It brought together the operations, maintenance, and marketing of ADNOC Gas Processing and ADNOC LNG businesses into one consolidated business.
In line with its plans to meet the increasing global demand for natural gas, ADNOC intends to more than double its LNG production capacity through its planned LNG growth project, including the construction of its 2nd LNG facility in Al Ruwais Industrial City, Al Dhafrah.
On the other hand, India has ambitious plans to expand the share of gas in its energy mix from the current 6-7% to 15% by 2030. This strategic move aims to diversify its energy sources and embrace cleaner fuel options, including LNG, as part of the country's energy transition efforts.