The deal secures 1 million tonnes per annum (mtpa) of LNG for India, making IndianOil ADNOC’s largest LNG customer by 2029 with a total offtake of 2.2 mtpa.
In a significant boost to energy cooperation between the UAE and India, the Abu Dhabi National Oil Company (ADNOC) announced today the signing of a definitive 15-year Sales and Purchase Agreement (SPA) with Indian Oil Corporation Ltd (IndianOil), India’s leading energy provider. This landmark deal solidifies a previous Heads of Agreement and commits ADNOC to supplying IndianOil with 1 mtpa of liquefied natural gas (LNG), primarily sourced from its pioneering Ruwais LNG project.
The agreement is a testament to the deepening bilateral trade and strategic energy partnership between the two nations, underpinned by the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022. It reinforces the UAE’s position as a reliable global energy supplier and supports India's burgeoning energy needs, contributing to its energy security and ambitions for a cleaner energy mix.
The LNG will be sourced from ADNOC's Ruwais LNG project, a state-of-the-art facility currently under development in Al Ruwais Industrial City, Abu Dhabi. Set to begin commercial operations in 2028, the project is designed to be a leader in sustainable energy production. It will be the first LNG export facility in the Middle East and North Africa (MENA) region to operate on clean power, positioning it as one of the world's lowest-carbon intensity LNG plants.
The project is leveraging advanced technologies, including artificial intelligence (AI), to enhance its operational efficiency and safety while minimizing environmental impact. With a total production capacity of 9.6 mtpa, the Ruwais LNG project has already committed over 8 mtpa to international customers through long-term agreements, highlighting the strong global demand for ADNOC’s lower-carbon energy solutions.
This latest SPA, which allows for LNG cargoes to be delivered to any port in India, will significantly expand IndianOil’s LNG portfolio. By 2029, IndianOil will emerge as ADNOC’s largest LNG customer, with a total offtake reaching 2.2 mtpa. This includes the 1 mtpa from the new Ruwais project, along with an existing 1.2 mtpa supply from ADNOC’s long-established Das Island operations.
Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing, emphasized the importance of the deal, stating, “This long-term agreement with IndianOil underscores the robust energy relations between the UAE and India.” He added that the Ruwais LNG Project will help meet growing global demand for lower-carbon gas.
