Oil & Gas

Abu Dhabi National Oil Company (Adnoc) has signed a 15-year agreement to supply liquefied natural gas (LNG) to Indian Oil Corporation (IndianOil), one of India’s largest energy firms. Under the deal, Adnoc will provide 1 million tonnes per annum (mtpa) of LNG from its lower-carbon Ruwais LNG project, which is currently under development in Al Ruwais Industrial City. The LNG will be delivered to ports across India, supporting the country’s growing demand for cleaner energy sources. While financial terms were not disclosed, the agreement marks a significant step in Adnoc’s expanding role as a global LNG supplier.

The Ruwais LNG project is expected to begin commercial operations in 2028 and is designed to be a major component of Adnoc’s strategy to meet rising global LNG demand with lower-carbon solutions. So far, more than 8 mtpa of the project’s total planned 9.6 mtpa capacity has already been committed to customers through long-term contracts. With this latest deal, IndianOil is set to become Adnoc’s largest LNG customer by 2029, securing a combined 2.2 mtpa—1.2 mtpa from the Das Island facilities and 1 mtpa from Ruwais.

This deal is underpinned by the Comprehensive Economic Partnership Agreement (CEPA) signed between the UAE and India in 2022, which aims to deepen bilateral trade and energy ties. The partnership highlights the strategic alignment between the two countries in diversifying energy supply chains and supporting energy transition goals. In recent months, Adnoc Gas has also signed similar agreements with other major Indian energy firms, including a 0.5 mtpa supply deal with HPCL and a 10-year agreement with Gail India for LNG deliveries starting in 2026.

Adnoc Gas, listed on the Abu Dhabi Securities Exchange, is also expected to acquire a 60% stake in the Ruwais LNG project from Adnoc by the second half of 2028. This acquisition will more than double Adnoc Gas’s operated LNG production capacity from current levels to 15 mtpa. With this expansion, Adnoc Gas is positioning itself as a key LNG supplier not only to India but also to global markets, capitalizing on rising demand driven by industrial growth and cleaner energy initiatives.