Under the deal, LNG cargoes can be delivered to any port across India, enhancing the country’s energy security and meeting its rising energy demand.
Abu Dhabi National Oil Company (ADNOC) has signed a landmark 15-year Sales and Purchase Agreement (SPA) with Indian Oil Corporation Ltd (IndianOil), securing the supply of 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) to India from its lower-carbon Ruwais LNG project.
The agreement, announced on Tuesday, formalises a previous Heads of Agreement and strengthens ADNOC’s footprint in Asia’s rapidly growing LNG market. Under the deal, LNG cargoes can be delivered to any port across India, enhancing the country’s energy security and meeting its rising energy demand.
UAE–India energy ties
By 2029, IndianOil is expected to become ADNOC’s largest LNG customer, with total offtake rising to 2.2 mtpa. This will comprise 1.2 mtpa from ADNOC’s existing Das Island operations and 1 mtpa from the Ruwais LNG project, which is currently under development.
“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 of 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 deal also reflects the success of the Comprehensive Economic Partnership Agreement (CEPA) signed between the UAE and India in 2022, which has deepened bilateral trade and energy cooperation.
Ruwais LNG: A low-carbon first for M-E
The Ruwais LNG project, located in Al Ruwais Industrial City, Abu Dhabi, is expected to begin commercial operations in 2028. Once operational, it will be the first LNG facility in the Middle East to run on clean power, making it one of the lowest carbon-intensity LNG plants worldwide.
The facility will deploy advanced technologies, including artificial intelligence, to boost efficiency, safety, and sustainability. With two liquefaction trains of 4.8 mtpa each, it will have a combined production capacity of 9.6 mtpa—more than doubling ADNOC Gas’ current operated LNG capacity to around 15 mtpa.
Global demand for ADNOC’s lower-carbon LNG has already been demonstrated, with more than 8 mtpa of the project’s output committed under long-term agreements with international buyers.
In November 2024, ADNOC Gas confirmed it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost by the second half of 2028, further consolidating its role in the LNG value chain.
Energy security for India, market expansion for ADNOC
India, the world’s third-largest energy consumer, has been seeking to diversify its energy imports and expand the role of natural gas in its energy mix. The long-term LNG deal with ADNOC is expected to play a critical role in this effort.
For ADNOC, the agreement reinforces its position as a reliable global supplier of LNG and supports its strategy to expand in Asia, where demand for lower-carbon energy sources continues to surge.
