ADNOC Group has signed a 15-year liquefied natural gas (LNG) supply agreement with IndianOil to deliver 1 million metric tonnes annually. This agreement is part of ADNOC’s strategy to expand its customer base and strengthen its long-term partnership with IndianOil. The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, which is expected to start commercial operations in 2028. The agreement contributes to promoting cooperation between the UAE and India and supports India’s plans to increase its reliance on gas in its primary power mix by 2030.
Strengthening Energy Ties: ADNOC and IndianOil Sign Historic LNG Deal
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In a landmark agreement, ADNOC Group has signed a 15-year liquefied natural gas (LNG) supply contract with IndianOil to deliver 1 million metric tonnes of LNG per year. This deal is set to expand ADNOC’s customer base and fortify a long-term partnership with IndianOil. The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, expected to start commercial operations in 2028. This agreement fosters cooperation between the UAE and India and aligns with India’s objective to enhance its reliance on natural gas in the primary power mix by 2030.
Expanding Customer Base and Strategic Partnership
Editor: Can you elaborate on how this 15-year LNG supply agreement between ADNOC and IndianOil will impact the energy sector?
Dr.Amit Kumar,Energy Sector Specialist: This agreement is pivotal because it underscores ADNOC’s commitment to becoming a reliable global LNG provider. By delivering 1 million metric tonnes of LNG annually to IndianOil, ADNOC not only gains a substantial customer but also strengthens its global foothold. This partnership signifies mutual trust and strategic alignment in energy security and supply diversification.
Source of LNG: Lower-Carbon Ruwais LNG Project
Editor: Could you provide insights into the Ruwais LNG project and its significance in this context?
dr. amit Kumar, Energy Sector Specialist: the Ruwais LNG project is a significant milestone for ADNOC, as it represents a commitment to reducing carbon emissions. Scheduled to commence commercial operations in 2028, the project will provide the LNG needed for this agreement. Emphasizing lower-carbon energy sources is critical as countries shift towards more sustainable energy solutions. this project aligns with global efforts to mitigate climate change.
Supporting India’s Energy Goals
Editor: How does this LNG agreement with IndianOil support India’s energy goals?
Dr.Amit Kumar, Energy sector Specialist: India aims to increase its reliance on natural gas in its primary power mix by 2030. This LNG agreement with ADNOC supports that initiative by providing a stable and considerable supply of natural gas.By doing so, India can transition towards cleaner energy sources, reduce emissions, and meet its growing energy demands in a sustainable manner.
Promoting International Cooperation
Editor: Can you discuss the broader implications of this agreement on UAE-India relations?
Dr. Amit Kumar, Energy Sector Specialist: This agreement is a testament to the deepening energy ties between the UAE and India. The LNG agreement, together with other projects and initiatives, fosters mutual cooperation and understanding between the two nations. Such strategic partnerships not only contribute to economic growth but also enhance energy security and reliability for both countries.
Concluding Remarks
Editor: What are the key takeaways from this historic LNG deal?
Dr. Amit Kumar,Energy Sector Specialist: The signing of this 15-year LNG supply agreement between ADNOC and IndianOil is a win-win situation for both countries,promoting strategic cooperation and energy security. This deal supports India’s plans to enhance its reliance on natural gas, while ADNOC cements its position as a leading global natural gas provider. The agreement is also indicative of broader bilateral ties, bolstering the economic and energy relations between the UAE and India[1], [2], [3].
