UAE's Adnoc Gas, Indian Oil sign massive Dh33 billion LNG deal

Abu Dhabi-based integrated gas processing company Adnoc Gas on Tuesday said it has signed a massive Dh25.7-Dh33 billion ($7-9 billion) agreement with the Indian Oil Corporation Ltd (IOCL) to supply liquefied natural gas (LNG) for 14 years.

Under the deal, the UAE firm will export up to 1.2 million metric tonnes per annum (mmtpa) of LNG to India’s largest integrated energy company.

This massive deal comes in the wake of a $1-1.2 billion deal Adnoc Gas signed with the French multi-energy company TotalEnergies Gas and Power Limited, a subsidiary of TotalEnergies, to supply LNG for three years.

The Abu Dhabi-listed company earlier this month awarded a nearly Dh5 billion contract for a new natural gas pipeline to the Northern Emirates to Petrofac Emirates and the consortium between National Petroleum Construction and C.A.T International.

This is the first time that an Indian company has signed a long term LNG import deal with Adnoc.

“We are pleased to announce this long-term LNG sale, further strengthening the long-standing 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,” said Ahmed Alebri, CEO, Adnoc Gas.

Adnoc Gas supplies around 60 per cent of the UAE’s sales gas needs and supplies end-customers in over 20 countries.

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