ADNOC signs multi-year LNG supply agreement with IndianOil

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UAE’s ADNOC Group has signed a 15-year liquefied natural gas (LNG) supply agreement with IndianOil to deliver 1 million metric tonnes annually, according to the Abu Dhabi Media Office.

The LNG will primarily come from the state-owned energy firm’s lower-carbon Ruwais LNG project.

ADNOC has big ambitions in gas and LNG, which, along with renewable energy and petrochemicals, it sees as pillars for its future growth. It currently produces around six metric tonnes per annum (mtpa) of LNG and aims to lift its capacity to 15 mtpa.

The company already have existing LNG supply deals with Germany’s EnBW, Japan Petroleum Exploration Company, TotalEnergies Gas and Power, and India Oil Corporation.

Earlier in July, a consortium of global energy companies acquired a combined 40 per cent stake in the Ruwais LNG project, as the global demand for natural gas is expected to surge by more than 50 per cent by 2040.

bp, Mitsui & Co., Shell and TotalEnergies will each take a 10 per cent stake in the Ruwais LNG plant. ADNOC also signed multi-year LNG supply agreements with Shell and Mitsui to deliver 1 mtpa and 6 mtpa, respectively.

The Ruwais LNG project, currently under development in Abu Dhabi, is set to be the first LNG export facility in the Middle East and North Africa region to run on clean power. When completed, it is expected to consist of two 4.8 million mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa.

The LNG supply agreement with IndianOil was signed during Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed Al Nahyan’s official visit to India.

ADNOC also signed an agreement with the Indian Strategic Petroleum Reserve to extend its existing oil storage agreement and support the country’s energy security.

 Read: ADNOC’s Ruwais LNG sells 40% stake to Shell, Total, BP, Mitsui