Under the SPA, Adnoc Gas will supply up to 1.2 million tonnes per annum (mtpa) of LNG to Indian Oil.
Adnoc Gas said this agreement converts the previous heads of agreement between the parties, with first deliveries to begin in 2026.
Moreover, the agreement is valued in the range of $7 billion to $9 billion over its 14-year term, it said.
Adnoc Gas said the LNG supplies will be sourced from its Das Island liquefaction facility, which has a production capacity of up to 6 mtpa.
The deal builds on Adnoc Gas’ strategy to expand its customer base, following a series of LNG agreements signed over the past two years.
These deals range from 0.4 mtpa to 1.2 mtpa. They are for periods ranging up to 14 years and will supply key growth markets in Asia, such as India, Adnoc Gas said.
Two LNG supply deals
Besides this deal, Indian Oil and Adnoc signed last year a heads of agreement for volumes from the Al Ruwais LNG plant.
The 15-year deal is for 1 mtpa of LNG.
Adnoc said these LNG supplies will be primarily sourced from its Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi, and is expected to start commercial operations in 2028.
“By 2029, Indian Oil is expected to become Adnoc’s biggest LNG customer, with a total offtake of 2.2 mtpa, comprising 1.2 mtpa from Das Island and 1 mtpa from Ruwais LNG,” it said.
Expansion
State-owned Adnoc owns a 70 percent stake in Adnoc LNG, which currently produces about 6 mtpa of LNG from its facilities on Das Island.
Also, Adnoc Gas said in November 2024 that it expects to splash about $5 billion to buy a 60 percent operating interest from its parent Adnoc in the 9.6 mtpa Al Ruwais LNG export plant.
BP, Mitsui & Co., Shell, and TotalEnergies agreed to buy a 10 percent equity stake in Adnoc’s LNG export terminal.
The LNG project will more than double Adnoc’s existing UAE LNG production capacity to around 15 mtpa, as the company builds its international LNG portfolio.