Massive $9 Billion LNG Triumph: ADNOC Gas and Indian Oil Forge Game-Changing 14-Year Alliance!
ADNOC Gas has cemented a pivotal long-term deal to supply liquefied natural gas (LNG) to Indian Oil Corporation Ltd, significantly bolstering energy ties between the UAE and India. This landmark 14-year Sales and Purchase Agreement (SPA), valued between $7 billion and $9 billion, promises to deliver up to 1.2 million tonnes of LNG annually to India starting in 2026.
This agreement marks the transition from a preliminary Heads of Agreement to a finalized SPA, with the inaugural deliveries slated for 2026. Fatema Al Nuaimi, CEO of ADNOC Gas, emphasized the strategic importance of this partnership in advancing India’s target of increasing gas’s share in its primary energy mix to 15% by 2030, while underscoring ADNOC’s commitment to providing lower-carbon energy solutions.
The LNG shipments will be sourced from ADNOC Gas’s Das Island facility, renowned as one of the world’s longest-operating LNG plants with an annual production capacity of 6 million tonnes. The facility’s longstanding reliability is cemented by its successful delivery of over 3,500 LNG cargoes since it began operations. This agreement aligns with ADNOC Gas’s recent strategy of securing long-term supply contracts across Asia, with several deals already established for deliveries ranging from 0.4 to 1.2 million tonnes per year over terms extending up to 14 years. Such agreements have reinforced ADNOC Gas’s position as a key LNG supplier to rapidly expanding Asian markets, illustrating a robust response to escalating energy demands.
The partnership not only strengthens bilateral energy cooperation but also plays a crucial role in regional energy security and sustainability aspirations. With this comprehensive agreement, ADNOC Gas and Indian Oil are set to forge a sustainable and mutually beneficial energy future, reflecting a concerted effort to meet growing energy needs while advancing cleaner energy initiatives across the Asian continent.
Original Source: https://www.newsonair.gov.in/adnoc-gas-secures-7-9-billion-lng-deal-with-indian-oil-for-14-years/
Category : Regional News
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Publish Date: 2025-02-13 09:07:00
