ADNOC Gas and Indian Oil Corporation have formalized a landmark 14-year sales and purchase agreement (SPA), marking a significant step in the energy collaboration between the UAE and India. The deal, valued between $7 to $9 billion, will see the export of up to 1.2 million tonnes per annum of liquefied natural gas from ADNOC Gas to India. This long-term agreement, set to begin deliveries in 2026, builds on the initial Heads of Agreement signed by the two companies and represents a powerful reinforcement of their strategic partnership.

Strengthening UAE-India Energy Relations

Fatema Al Nuaimi, CEO of ADNOC Gas, highlighted the importance of this agreement, stating, "This agreement strengthens our long-standing partnership with Indian Oil and underscores the dynamic energy relationship between the UAE and India. As a responsible and reliable supplier of lower-carbon gas, ADNOC Gas is proud to support India's efforts to incorporate gas into 15 percent of its energy mix by 2030." This partnership not only serves the immediate needs of India’s growing energy demand but also supports the country’s broader sustainability and energy transition goals, with natural gas playing an essential role in reducing carbon emissions and improving air quality.

Strategic Expansion of ADNOC Gas' Global Footprint

The SPA is a pivotal component of ADNOC Gas’s strategy to expand its customer base in key growth markets, particularly in Asia, where demand for cleaner energy solutions is surging. Over the past two years, ADNOC Gas has secured multiple LNG agreements with various international customers, ranging in supply volumes from 0.4 to 1.2 MTPA. These agreements highlight the company’s growing position as a leading global supplier of reliable, lower-carbon LNG. The deal with Indian Oil, one of India’s largest and most influential energy companies, further solidifies ADNOC Gas’s competitive edge in a rapidly evolving global market.

Das Island: The Backbone of LNG Production

The LNG supplied to India will come from ADNOC Gas’s Das Island liquefaction facility, which is renowned for its operational excellence and capacity. As the world’s third-longest-operating LNG plant, Das Island has a production capacity of up to 6 mtpa and has shipped over 3,500 LNG cargoes globally since its inception. The facility’s state-of-the-art infrastructure and its commitment to safety and sustainability make it an ideal source of LNG for high-demand markets like India, ensuring ADNOC Gas can meet both its short-term and long-term supply commitments.

Fuelling India’s Energy Transition

As India strives to increase the share of natural gas in its energy mix to 15 percent by 2030, the ADNOC Gas-IoCL agreement will play a vital role in supporting these ambitions. Natural gas is seen as a bridge fuel, enabling India to move away from coal while reducing emissions in its power generation and industrial sectors. This collaboration aligns with both companies’ vision for a sustainable energy future, with ADNOC Gas committed to providing a cleaner energy alternative to support India’s energy transition goals.

In summary, this strategic LNG deal between ADNOC Gas and Indian Oil is not only a major commercial win but also a crucial step in reinforcing the growing energy ties between the UAE and India. It positions both companies at the forefront of the global energy transition, ensuring reliable, lower-carbon energy supply for India’s burgeoning economy while supporting global sustainability initiatives.