UAE's ADNOC sign 14 year deal with IOCL to supply LNG
Economy
4 min read
The United Arab Emirates company ADNOC (Abu Dhabi National Oil Company) has signed a contract with the government of India-owned Indian Oil Corporation Limited (IOCL) to supply liquefied natural gas (LNG) for 14 years.
Several contracts were signed in the energy sector between Indian and foreign companies on the sidelines of India Energy Week.
The third edition of the India Energy Week was held in New Delhi from 11-14 February 2025.
During the India Energy Week, India signed a deal to export LNG from India to Nepal. This will be the first-ever export of LNG from India to a foreign country.
The signing of numerous deals is expected to boost the energy security of India which is a major importer of oil and gas in the world.
Features of the ADNOC Deal with IOCL
- 14-year agreement between the two companies
- ADNOC Gas, a subsidiary company of ADNOC, will supply 1.2 million tonnes per year of LNG.
- The LNG supply will begin from 2026.
- ADNOC will supply LNG from its Das Island liquefaction facility.
- IOCL will import the LNG at its Dahej facility in Gujarat or at its Ennore terminal in Tamil Nadu.
- The total value of the deal is USD 6-9 billion
ADNOC deal with BPCL
- ADNOC Gas to supply 2.4 million tonnes of LNG to BPCL
- Tenure - 5 years, starting April 2025.
- Agreement can be extended by another 5 years with mutual consent.
TotalEnergies deal with GPSC
- French energy giant TotalEnergies will supply 4 lakh tonnes of LNG per year to Gujarat State Petroleum Corporation Ltd (GPSC).
- Tenure -10 years starting from 2026.
- The LNG will be delivered by TotalEnergy at the GSPC, LNG import facility at Mundra in Gujarat.
- The LNG will be used by the GSPC mainly for its industrial customers.
Last year TotalEnergies signed a 10-year deal with IOCL to supply 8 lakh tonnes per year of LNG, starting from 2026.
First export of LNG from India
- For the first time, India has signed an agreement to export LNG from India.
- IOCL has signed an agreement with Yogya Holdings Nepal for the export of around 1,000 tonnes of LNG to Nepal for 5 years.
- The LNG will be supplied through cryogenic trucks through Dhamra Terminal in Odisha.
First wave energy pilot project
- The central government-owned BPCL has signed an agreement with Israeli company, Eco Wave Power to develop India's first wave energy pilot project.
- The 100 kW pilot project will be installed in Mumbai which will use the Israeli wave energy converter technology to convert sea waves into energy.
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