Abu Dhabi National Oil Company (ADNOC) has announced the signing of a long-term Heads of Agreement (HoA) with Indian Oil Corporation Ltd (IndianOil), India’s largest integrated and diversified energy company. The agreement secures the delivery of 1 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG) to IndianOil over the next 15 years.
The LNG will be sourced from ADNOC’s upcoming Ruwais LNG project, located in the Al Ruwais Industrial City in Abu Dhabi. The project, designed with a focus on lower-carbon energy production, is currently under development and is slated to begin commercial operations by 2028. The LNG cargoes will be transported to IndianOil’s designated ports in India, further cementing the partnership between the two energy giants.
Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC, emphasized the strategic importance of this agreement, stating, “India is a key strategic partner for the UAE, and this agreement underscores ADNOC’s commitment to delivering secure, lower-carbon energy to support India’s energy security. It also reflects the strong confidence in the Ruwais LNG project, a cornerstone of ADNOC’s strategy to expand its global LNG footprint and meet growing demand while supporting the transition to a cleaner energy future.”
This agreement enhances ADNOC’s presence in India’s rapidly expanding energy market. By 2029, IndianOil is anticipated to become ADNOC’s largest LNG customer, with a combined offtake of 2.2 mmtpa, including 1.2 mmtpa from Das Island and 1 mmtpa from the Ruwais LNG project.
The deal also highlights the success of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India, signed in 2022. CEPA has played a pivotal role in strengthening bilateral trade ties and energy cooperation between the two nations.
ADNOC’s agreement with IndianOil is part of a broader series of long-term LNG sales contracts, securing over 70% of Ruwais LNG’s production capacity with international partners, underscoring the global demand for ADNOC’s lower-carbon LNG solutions.