ADNOC has established a long-term sales and purchase agreement (SPA) with the Indian Oil Corporation Ltd (IndianOil) for the provision of 1 million tonnes per year (mtpa) of liquefied natural gas (LNG), primarily obtained from ADNOC’s environmentally friendly Ruwais LNG project.
This new SPA, which formalizes a prior heads of agreement, enhances ADNOC’s energy partnership with India and solidifies its position as a dependable global supplier of LNG.
The agreement includes provisions for LNG deliveries to any port throughout India.
ADNOC’s long-term collaboration with IndianOil
By 2029, IndianOil is projected to emerge as ADNOC’s largest LNG customer, with a total off-take of 2.2 mtpa, which will consist of 1.2 mtpa from ADNOC’s Das Island operations and 1 mtpa from the Ruwais LNG initiative.
Rashid Khalfan Al Mazrouei, ADNOC’s Senior Vice President of Marketing, remarked: “This long-lasting agreement with IndianOil highlights the strong energy connections between the UAE and India. Through our cutting-edge Ruwais LNG project, ADNOC will remain committed to supplying lower-carbon gas to satisfy the increasing global demand, support industries, and energize homes.”
The Ruwais LNG project, currently taking shape in Al Ruwais Industrial City, Abu Dhabi, is slated to commence commercial operations in 2028.
So far, more than 8 mtpa of the project’s total production capacity of 9.6 mtpa has been earmarked for international clients through long-term contracts.
The SPA illustrates the achievements of the comprehensive economic partnership agreement (CEPA) established between the UAE and India in 2022.
The Ruwais LNG facility, distinguished as the first of its kind in the Middle East to operate on clean energy, will rank among the LNG plants with the lowest carbon intensity in the world. It will also implement cutting-edge technologies, including AI, to improve safety, efficiency, and sustainability.
In November 2024, ADNOC Gas revealed plans to acquire ADNOC’s 60 percent interest in the Ruwais LNG project at cost, projected for the latter half of 2028.
Upon completion, the project, featuring two 4.8 mtpa liquefaction trains, will significantly enhance ADNOC Gas’s current operated LNG production capacity, raising it to approximately 15 mtpa.