ADNOC has signed a 15-year Sales and Purchase Agreement with Indian Oil Corporation Ltd (IndianOil) for the supply of 1 million tonnes per annum of liquefied natural gas sourced from ADNOC’s Ruwais LNG project.
The agreement converts a previous Heads of Agreement into a definitive agreement and expands ADNOC’s global footprint across the Asian LNG market, reinforcing its role as a global supplier of LNG.
Under the terms of the SPA, LNG cargoes can be delivered to any port across India, supporting the country’s energy needs and enhancing its energy security.
ADNOC, IndianOil seal LNG pact
By 2029, IndianOil is set to become ADNOC’s LNG customer with a total offtake of 2.2 mtpa – comprising 1.2 mtpa from ADNOC’s Das Island operations and 1 mtpa from the Ruwais LNG project.
Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing, said: “This long-term agreement with IndianOil underscores the robust energy relations between the UAE and India. Through our world-class Ruwais LNG Project, ADNOC will continue to provide more lower-carbon gas to meet growing global demand, fuel industries and power homes.”
ADNOC’s Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, is expected to commence commercial operations in 2028.
To date, over 8 mtpa of the project’s 9.6 mtpa production capacity has been committed to international customers through long-term agreements, underscoring global demand for ADNOC’s lower-carbon LNG.
The SPA highlights the success of the Comprehensive Economic Partnership Agreement (CEPA) signed between the UAE and India in 2022, which continues to foster bilateral trade and energy cooperation.
The Ruwais LNG facility will be the first in the Middle East to run on clean power, positioning it among the lowest-carbon intensity LNG plants globally. It will leverage technologies, including AI, to enhance safety, efficiency, and sustainability.
ADNOC Gas announced in November 2024 that it expects to acquire ADNOC’s 60 per cent stake in the Ruwais LNG project at cost, in the second half of 2028.
Upon completion, the project, comprising two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa, will more than double ADNOC Gas’ operated LNG production capacity to around 15 mtpa.
