Blitz Bureau
ABU Dhabi National Oil Company (Adnoc) will supply one million tonne per annum of liquefied natural gas to Indian Oil Corporation (IOC), the company said on September 10.
Adnoc will supply 1 million tonne of LNG from its Ruwais NG project for 15 years. This is the third LNG supply deal between Adnoc and Indian stateowned firms in just over a year. In July last year, Adnoc Gas signed an agreement with IOC for export of up to 1.2 million tonne per annum of LNG valued in the range of $7 billion to $ 9 billion over its 14-year term.
Separately, state-owned gas utility GAIL (India) Ltd signed a deal with Adnoc Gas to buy 0.5 million tonne of LNG annually for 10 years starting 2026.
The latest LNG supply deal was signed during the visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi to India. Long-term LNG contracts play an important role in balancing out the inherent volatility of the spot LNG market and thus make it an affordable and reliable LNG supply.
Adnoc Gas is the national oil and gas company of the Abu Dhabi government and is the oldest supplier of natural gas from the Middle East. Adnoc also signed an agreement with Indian Strategic Petroleum Reserves (ISPRL) for exploring the UAE firm’s participation in additional opportunities for crude storage in India and the renewal of their storage and management agreement on mutually acceptable terms and conditions.
This MoU builds on Adnoc’s existing involvement in crude storage at the Mangalore Cavern of ISPRL since 2018. Also signed was a production concession agreement for Abu Dhabi Onshore Block 1 between Urja Bharat – a joint venture of IOC and Bharat Petro resources Ltd, and Adnoc.
