Abu Dhabi (Al Ittihad)
ADNOC today announced the signing of the main terms of a long-term agreement (the LNG Agreement) with Indian Oil Corporation Limited (IOC) to supply 1 million metric tons per annum of LNG.
The shipments will be primarily from ADNOC’s low-emission Ruwais LNG project, currently under development in the Ruwais Industrial City in Abu Dhabi, and expected to begin commercial operations in 2028.
Under the 15-year agreement, the LNG will be shipped to Indian Oil Corporation Limited’s ports in India.
On this occasion, Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC, said: “India is an important strategic partner for the UAE, and this agreement underscores ADNOC’s commitment to providing safe, low-carbon energy to support the country’s energy security.
The agreement also highlights the confidence in the Ruwais LNG project, which is one of the main pillars of ADNOC’s strategy to expand its global presence in the field of LNG to meet the growing demand for this vital resource, and contribute to global efforts aimed at achieving the transition to a cleaner energy future.”
The agreement strengthens ADNOC’s position in India’s rapidly growing energy market. By 2029, IOC is expected to become ADNOC’s largest LNG customer with a total purchase volume of 2.2 million metric tons per annum (mtpa), including 1.2 mtpa from Das Island and 1 mtpa from the low-emission Ruwais LNG project.
The LNG supply agreement highlights the success of the Comprehensive Economic Partnership Agreement signed by the UAE and India in 2022, and contributes to enhancing bilateral trade cooperation between the two countries.
The agreement signed with Indian Oil Corporation Limited is one of several long-term LNG sales agreements from the Ruwais LNG project that ADNOC has signed with international partners, covering more than 70% of the project’s total production capacity.
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