Indian company to be ADNOC's biggest client for LNG supplies

Dubai: IndianOil will become the biggest customer of ADNOC's LNG supplies from 2029.

This follows a new deal signed by the Indian company with ADNOC for supplies totalling 1 million tonnes per annum.

By 2029, IndianOil's offtake of LNG will go up to 2.2 mtpa. Of this 2.2 mtpa, 1.2 mtpa will be from ADNOC’s Das Island operations and 1 mtpa from the Ruwais LNG project.

The new 15-year SPA (sales and purchase agreement) converts a previous 'heads of agreement' into a definitive deal.

It 'underscores ADNOC’s expanded global footprint, particularly across the high-demand Asian LNG market', the UAE company said in a statement.

LNG cargoes from ADNOC can be delivered to any port across India.

“This long-term agreement with IndianOil underscores the robust energy relations between the UAE and India," said Rashid Khalfan Al Mazrouei, ADNOC's Senior Vice-President, Marketing.

"Through our world-class Ruwais LNG Project, ADNOC will continue to provide more lower-carbon gas to meet growing global demand, fuel industries and power homes.”

The ADNOC’s Ruwais LNG project is under development in Al Ruwais Industrial City, and set to start operations in 2028. To date, over 8 mtpa of the project’s 9.6 mtpa production capacity has been committed to international customers through long-term agreements.

Also, the Ruwais LNG facility will be the first in the Middle East to run on clean power.