Abu Dhabi National Oil Company (ADNOC) has entered into a 15-year agreement with IndianOil to supply one million metric tonnes per annum (mtpa) of liquefied natural gas (LNG).
This long-term arrangement will leverage LNG primarily sourced from ADNOC's lower-carbon Ruwais LNG project.
The agreement was formalised during Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan's visit to India, where he met with Indian Prime Minister Narendra Modi.
In conjunction with this LNG deal, ADNOC also expanded its partnership with Indian Strategic Petroleum Reserve Limited to bolster India's energy security through an extended oil storage agreement.
The Ruwais LNG project, located in Al Ruwais Industrial City, Al Dhafra, Abu Dhabi, is expected to be the first LNG export facility in the Middle East and North Africa to utilise clean power.
It is designed to incorporate advanced technologies and artificial intelligence to minimise emissions and optimise operational efficiency.
With the construction of two LNG liquefaction trains, the project's capacity will be 9.6mtpa.
This expansion is set to more than double ADNOC's LNG production capacity in the UAE to approximately 15mtpa.
In July 2024, ADNOC confirmed partnerships with BP, Mitsui & Co., Shell, and TotalEnergies, each acquiring a 10% stake in the Ruwais LNG project, while ADNOC retains a 60% majority stake.
The final investment decision for the project was announced in June 2024, accompanied by the award of a $5.5bn engineering, procurement, and construction contract to a consortium led by Technip Energies, with JGC Corporation and NMDC Energy as partners.
The project is expected to commence commercial operations in 2028.
ADNOC has previously signed several other LNG supply agreements for the Ruwais project, including with Shell, Mitsui, China's ENN, Germany's EnBW, and SEFE.
Recently, ADNOC entered into a long-term heads of agreement with Osaka Gas, marking the first long-term LNG deal with a Japanese energy company since the early 1990s.
Both parties are anticipated to finalise a detailed sale and purchase agreement in the coming months.
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