Oil & Gas

Abu Dhabi National Oil Company (ADNOC) has secured a significant five-year liquefied natural gas (LNG) supply deal with India’s Bharat Petroleum Corporation Limited (BPCL), scheduled to commence in April 2025. The agreement will see BPCL receiving 40 LNG cargoes, totaling 2.5 million tonnes (mt), according to Reuters, citing sources familiar with the deal. The supply will begin at a lower level and gradually increase over the first two years of the agreement.

This new deal will be officially formalized during the India Energy Week conference, with ADNOC continuing to strengthen its position in the global LNG market. In addition to the BPCL deal, ADNOC is also set to finalize a 15-year LNG sale and purchase agreement with Indian Oil Corporation (IOC), a deal that was agreed upon in September 2024. However, ADNOC declined to comment on commercial negotiations when contacted via email, and BPCL and IOC did not immediately return requests for comment.

India, currently the world’s fourth-largest LNG importer, is focused on increasing the gas share in its energy mix from 6.2% to 15% by 2030. As part of this goal, Indian companies, including BPCL, are exploring various LNG procurement options, including potential purchases from the US, as stated by Oil Secretary Pankaj Jain. The country's growing energy demands make LNG a critical part of its energy transition.

The deal with BPCL comes amid ADNOC Gas's recent financial successes, including a record net income of $5bn for fiscal year 2024, reflecting a 13% year-on-year increase. The company also reported a 14% growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching $8.65bn. ADNOC Gas’s growth is further highlighted by its record quarterly income of $1.38bn since its initial public offering, along with a 2% rise in total sales volumes to 3.62 billion British thermal units.