ADNOC has announced the signing of a 15-year sale and purchase agreement with Indian Oil Corporation Limited, the largest integrated energy company in India, to supply one million tons of liquefied natural gas (LNG) annually, primarily sourced from the Ruwais project.
Under this agreement, the previously signed key terms have been transformed into a binding sales contract, which enhances ADNOC’s significant presence in global LNG markets, especially in the Asian region where demand for this critical resource is growing. This solidifies the company’s position as a reliable global LNG supplier.
According to the agreement, the LNG can be shipped to any port across India, which helps meet its growing energy resource needs and bolsters energy security.
By 2029, Indian Oil Corporation Limited is expected to become one of ADNOC’s largest LNG buyers, with total contractual purchases reaching 2.2 million metric tons annually, including 1.2 million metric tons per year from Das Island and one million metric tons annually from the Ruwais LNG project.
Global Demand
Rashed Khalfan Al Marzouqi, Senior Vice President of Marketing at ADNOC, stated, “The long-term agreement with Indian Oil Corporation underscores the robustness of UAE-India energy relations. Through the world-class Ruwais project, ADNOC will continue to deliver more low-emission LNG supplies to help satisfy the growing global demand for energy needed by industrial sectors and households.”
The Ruwais LNG project, currently being developed in the industrial city of Ruwais, Abu Dhabi, is expected to begin commercial operations in 2028.
So far, commitments have been made to sell more than 8 million metric tons per year from the total production capacity of the Ruwais project, which stands at 9.6 million metric tons annually. This reflects strong global demand for ADNOC’s low-emission LNG production.
Comprehensive Partnership
This agreement highlights the success of the Comprehensive Economic Partnership Agreement signed between the UAE and India in 2022, continuing to enhance bilateral cooperation, particularly in trade and energy sectors.
The Ruwais project will be the first LNG export facility powered by clean energy in the Middle East, making it one of the lowest carbon-intensive LNG plants globally. The project will utilize advanced technologies, including artificial intelligence tools and solutions, to enhance safety, reduce emissions, and improve operational efficiency.
In November of last year, ADNOC Gas announced its intention to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, aiming for the second half of 2028. Once operational, the project, with two LNG trains each with a capacity of 4.8 million metric tons annually and a total capacity of 9.6 million metric tons per year, will more than double the company’s current LNG production capacity to over 15 million metric tons annually.