India’s top oil firm IOC has signed a $7-9 billion deal to import liquefied natural gas (LNG) from the UAE’s ADNOC Gas plc for 14 years beginning 2026, the UAE company said.
Indian Oil Corporation (IOC) signed the deal as also a similar pact with TotalEnergies of France during Prime Minister Narendra Modi’s visit to France and the UAE last week.
ADNOC Gas is an arm of Abu Dhabi National Oil Company.
In a statement, ADNOC Gas said the agreement with IOC for the export of up to 1.2 million tonnes per annum (mt) of LNG is “valued in the range of $7 billion to $9 billion over its 14-year term, signifies a major step forward in the partnership between the two industry leaders”.
The deal with TotalEnergies Gas and Power Ltd is for the import of 0.8 million tonnes a year of LNG for 10 years starting 2026.
This is the first long-term deal TotalEnergies has signed with an Indian company. Also, this is the first time an Indian company has signed a long-term LNG import deal with Adnoc.
TotalEnergies is the third largest LNG supplier in the world and would be supplying LNG to IOC from their diversified portfolio across the world.
“The landmark deal marks another significant milestone for ADNOC Gas as it expands its global reach, reinforcing its position as a global LNG export partner of choice, and reaffirming IOC as its key strategic partner in the LNG market,” the statement said.
Commenting on the agreement, Ahmed Alebri, chief executive officer of ADNOC Gas, said the long-term LNG sale deal further strengthens the longstanding partnership with IOC.
“We look forward to expanding our collaboration and take pride in the knowledge that ADNOC Gas’ LNG exports will further support the development of IOC and contribute to India’s growth story.”
Under the terms of the agreement, ADNOC Gas will deliver up to 1.2 mt of LNG to IOC in India.
“The deal serves as a testament to ADNOC Gas’ ability to meet the growing global demand for LNG, a critical fuel in the energy transition,” the statement said.
IOC is sewing new deals in line with the government goal of increasing the share of natural gas to 15 per cent by 2030 from 6.2 per cent.
