ADNOC Gas has finalized a major long-term agreement to supply liquefied natural gas to Indian Oil Corporation Ltd, marking a significant expansion of energy cooperation between the UAE and India. The 14-year sales and purchase agreement (SPA), valued between $7 billion and $9 billion, will provide IndianOil with up to 1.2 million tonnes of LNG annually starting in 2026.
This agreement converts the previous Heads of Agreement between the parties into an SPA, with the first deliveries set to begin in 2026. ADNOC Gas CEO Fatema Al Nuaimi emphasized the agreement’s importance in supporting India’s ambitious goal of increasing gas usage to 15% of its primary energy mix by 2030 while highlighting the company’s commitment to providing lower-carbon energy solutions.
The LNG will be sourced from ADNOC Gas’s Das Island facility, one of the world’s longest-operating LNG plants, with a production capacity of 6 million tonnes per annum. The facility has demonstrated its reliability through the successful delivery of over 3,500 LNG cargoes since beginning operations.
This agreement follows ADNOC Gas’s recent pattern of securing long-term supply contracts, with several deals ranging from 0.4 to 1.2 million tonnes per annum over periods of up to 14 years. These arrangements have strengthened the company’s position as a leading LNG supplier to growing Asian markets.
