ADNOC and Indian Oil Ink Long-Term LNG Supply Deal

Indian Oil Corporation (IOCL) has signed a 15-year agreement with the Abu Dhabi National Oil Company (ADNOC) to supply 1 million tonnes of liquefied natural gas (LNG) annually, according to India's Ministry of Petroleum and Natural Gas. The agreement was signed during the official visit of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to India, which commenced on September 9, marking his first visit to India in this role.

This agreement represents the third long-term LNG contract between ADNOC and Indian energy companies in just over a year. Previously, IOCL and GAIL had secured similar contracts with ADNOC for 1.2 million metric tonnes per annum (MMTPA) and 0.5 MMTPA of LNG, respectively. The Ministry highlighted that these agreements have bolstered India's energy security by diversifying its LNG supply sources, helping the nation meet its growing energy needs.

In addition to the LNG supply deal, ADNOC also signed a Memorandum of Understanding (MoU) with India Strategic Petroleum Reserve Limited (ISPRL). This MoU aims to explore ADNOC's potential involvement in additional crude oil storage facilities in India. It also includes a provision to renew their existing storage and management agreement on mutually agreeable terms. Since 2018, ADNOC has been storing crude oil in India's Mangalore Cavern as part of its collaboration with ISPRL. The renewal and expansion of this partnership will further contribute to India's strategic petroleum reserves, enhancing the country's energy security.

Moreover, a Production Concession Agreement was signed for Abu Dhabi's Onshore Block 1 between Urja Bharat, a joint venture between IOCL and Bharat PetroResources, and ADNOC. This marks a significant milestone, as it is the first production concession awarded to an Indian company operating in the UAE. The concession allows Urja Bharat to extract crude oil from the block and transport it to India, which will further strengthen the country's crude oil supply and energy security.

The agreements, signed during the Crown Prince's visit, are seen as a testament to the growing strategic partnership between India and the UAE. The long-term energy collaboration reflects both nations' commitment to deepening economic ties and addressing mutual energy security concerns. These developments are particularly crucial for India, which is the third-largest energy consumer in the world and heavily reliant on imported fuel. By securing diverse and long-term energy supply contracts, India can ensure a steady and reliable source of energy to meet its rapidly expanding industrial and consumer demands.