ADNOC Gas, Indian Oil Sign 14-Year LNG Deal Worth up to $9B

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ADNOC Gas, Indian Oil Sign 14-Year LNG Deal Worth up to $9B

In a release sent to Rigzone by the ADNOC Gas team recently, ADNOC Gas announced a 14-year sales and purchase agreement (SPA) with Indian Oil Corporation Ltd for the export of up to 1.2 million tons per annum (mtpa) of liquefied natural gas (LNG) “to India’s largest integrated and diversified energy company”. ADNOC Gas noted […]

ADNOC Gas noted in the release that this agreement converts a previous Heads of Agreement between the parties into a SPA. First deliveries will begin in 2026, according to ADNOC Gas, which revealed in the release that the agreement “is valued in the range of $7 billion to $9 billion over its 14-year term and signifies a major step forward in the partnership between the two industry leaders”.

The agreement builds on ADNOC Gas’ strategy to expand its customer base, following a series of LNG agreements signed over the past two years, the company said in the release, adding that these deals range from 0.4 million tons per annum to 1.2 million tons per annum.

“They are for periods ranging up to 14 years and reinforce … [ADNOC Gas’] position as a leading supplier of reliable, lower-carbon LNG to key growth markets in Asia, such as India,” ADNOC Gas highlighted in the release.

ADNOC Gas noted in its release that the LNG will be supplied from ADNOC Gas’ Das Island liquefaction facility, which it said has a production capacity of up to six million tons per annum. Das Island has shipped over 3,500 LNG cargoes worldwide since starting operations, according to the release.

“This agreement strengthens our long-standing partnership with Indian Oil and is a testament to the dynamic and robust energy ties between the UAE and India,” ADNOC Gas CEO Fatema Al Nuaimi said in the release.

“As a reliable and responsible supplier of lower-carbon gas, ADNOC Gas looks forward to supporting India’s plans to make gas 15 percent of its primary energy basket by 2030,” Al Nuaimi added.

A statement posted on Indian Oil Corp Ltd’s X page recently said, “Indian Oil is proud to extend its partnership with ADNOC Gas through this long-term LNG agreement”.

“The deal strengthens the India-UAE energy ties and fuels our vision for a cleaner, greener India,” the statement added.

In a statement posted on its website on February 6, ADNOC Gas announced “record earnings for the full year 2024 of $5 billion”, as well as the company’s “highest quarterly income of $1.38 billion since its IPO”.

“Our record-breaking fourth quarter results demonstrate our ability to deliver on our ambitious growth strategy as we seek to realize EBITDA growth of over 40 percent by 2029,” Al Nuaimi said in ADNOC Gas’ February 6 statement.

In that statement, Al Nuaimi highlighted “ADNOC Gas’ evolution into one of the highest income generating companies listed in the UAE”, which the ADNOC Gas CEO said “is a testament to our commitment to create long-term and sustainable value for our shareholders, as we invest in growth projects to meet the growing demand for lower carbon Domestic Gas, LPG and LNG, both locally and globally as key fuels in the energy transformation”.

Last month, in another statement posted on its site, ADNOC Gas announced the signing of a $450 million, three-year LNG supply agreement with JERA Global Markets Pte Ltd.

In a separate statement posted on its site last month, ADNOC Gas said it “celebrated a new long-term strategic partnership with EWEC”.

“This landmark agreement is underpinned by a 10-year flexible natural gas sales and purchase agreement between ADNOC Gas Facilities LLC and EWEC worth $10 billion,” the company highlighted at the time.

In a statement posted on its site in November last year, ADNOC Gas announced that it had signed a 10-year SPA with GAIL India Limited to supply up to 0.52 MTPA of LNG. ADNOC Gas did not disclose the value of the deal in that statement.

ADNOC Gas describes itself as a world-class, large-scale integrated gas processing company operating across the gas value chain. The company supplies approximately 60 percent of the UAE’s gas sales and supplies end-customers in over 20 countries, according to its site.

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