ADNOC inks 15-year LNG sales, purchase agreement with IndianOil

Image: ADNOC

ADNOC has signed a 15-year sales and purchase agreement (SPA) with Indian Oil Corporation Ltd (IndianOil) for the supply of 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG), sourced primarily from ADNOC’s lower-carbon Ruwais LNG project.

The long-term SPA, which converts a previous heads of agreement into a definitive agreement, strengthens ADNOC’s energy ties with India and reinforces its role as a reliable global LNG supplier.

Under the terms of the agreement, LNG cargoes can be delivered to any port across India.

ADNOC’s long-term agreement with IndianOil

By 2029, IndianOil is set to become ADNOC’s largest LNG customer, with a total offtake of 2.2 mtpa. This will comprise 1.2 mtpa from ADNOC’s Das Island operations and 1 mtpa from the Ruwais LNG project.

Rashid Khalfan Al Mazrouei, ADNOC SVP, 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.”

The Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, is expected to begin commercial operations in 2028.

To date, over 8mtpa of the project’s 9.6 mtpa production capacity has been committed to international customers through long-term agreements.

The SPA highlights the success of the comprehensive economic partnership agreement (CEPA) signed between the UAE and India in 2022.

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 also leverage advanced technologies, including AI, to enhance safety, efficiency, and sustainability.

In November 2024, ADNOC Gas announced its expectation 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, which consists of two 4.8 mtpa liquefaction trains, will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 mtpa.