ADNOC Gas have announced a 14-year sales and purchase agreement (SPA) with Indian Oil Corporation (IoCL) for the export of up to 1.2 million tonnes per annum (mtpa) of liquefied natural gas (LNG).
This agreement converts the previous Heads of Agreement between the parties into an SPA, with first deliveries to begin in 2026. The agreement was announced on Wednesday.
The agreement, signed by ADNOC Gas and IndianOil, is valued in the range of $7-9 billion over its 14-year term, and signifies a major step forward in the partnership between the two industry leaders.
Primary energy basket
Fatema Al Nuaimi, ADNOC Gas CEO, said: “This agreement strengthens our long-standing partnership with IndianOil and is a testament to the dynamic and robust energy ties between the UAE and India. As a reliable and responsible supplier of lower-carbon gas, ADNOC Gas looks forward to supporting India’s plans to make gas 15 per cent of its primary energy basket by 2030.”
The agreement 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 reinforce its position as a leading supplier of reliable, lower-carbon LNG to key growth markets in Asia, such as India.
The LNG will be supplied from ADNOC Gas’ Das Island liquefaction facility, which has a production capacity of up to 6 mtpa. As the world’s third longest-operating LNG plant, Das Island has shipped over 3,500 LNG cargoes worldwide since starting operations.