UAE’s ADNOC Signs Up to $9-Billion LNG Supply Deal With Indian Oil | OilPrice.com
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Breaking News:
ADNOC Gas, a unit of Abu Dhabi’s national oil company, has signed a 14-year agreement worth $7 billion-$9 billion to supply LNG to Indian Oil Corporation starting in 2026.
Under the deal, ADNOC Gas will export up to 1.2 million tonnes per annum (mtpa) of liquefied natural gas to India’s largest integrated and diversified energy company.
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The agreement is valued in the range of $7 billion to $9 billion over its 14-year term, and signifies a major step forward in the partnership between the two industry leaders, the UAE company said in a statement.
The LNG will be supplied from ADNOC Gas’ operating Das Island liquefaction facility, which has a production capacity of up to 6 mtpa.
“As a reliable and responsible supplier of lower-carbon gas, ADNOC Gas looks forward to supporting India’s plans to make gas 15% of its primary energy basket by 2030,” ADNOC Gas chief executive Fatema Al Nuaimi said.
ADNOC Gas has signed a series of long-term LNG supply deals in recent years as part of its strategy to expand its customer base.
India, for its part, is expected to see its natural gas consumption triple by 2050 amid industry expansion and rising oil refining, the U.S. Energy Information Administration (EIA) said last year.
As India sees fertilizers as a critical industry for its agricultural sector, and as steelmaking and construction are booming to meet the growing economy and population, natural gas demand will continue to rise. India’s domestic production, although it has increased over the past two decades, will not be enough to meet growth in demand. So the country will have to rely on more LNG imports, considering that it lacks pipeline connections with major gas producers such as Russia or the Gulf petrostates.
India’s natural gas demand is set to jump by 60% by 2030, supported by an upcoming global LNG supply wave, a new report by the Paris-based International Energy Agency (IEA) showed this week.
By Tsvetana Paraskova for Oilprice.com
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