Abu Dhabi-based integrated gas processing company ADNOC Gas announced a deal of Dh 25.7- Dh 33 billion (approximately Rs 2570-3300 million) with the Indian Oil Corporation Ltd (IOCL) to supply 1.2 million metric tonnes of liquefied natural gas (LNG) annually.
The massive contract with Indian Oil has been signed for a period of 14 years, ADNOC said in a statement on Tuesday.
The deal comes after Prime Minister Narendra Modi’s visit to the United Arab Emirates (UAE) last week. Indian Oil revealed that UAE has issued a license to import LNG to India without paying a 2.5 percent import tax.
Indian companies have invested billions of rupees to support their gas infrastructure and are scouting for long-term LNG import treaties as the country aims to grow the share of gas in its energy mix to 15 percent by 2030 from 6.2 percent currently.
This is the first time that an Indian company has signed a long-term LNG import treaty with ADNOC.
Since the Russian invasion of Ukraine in February 2022, the state-backed oil giant, Abu Dhabi National Oil Co (ADNOC), has increased its priority on the gas market. Europe in particular requires a significant amount of LNG to assist in replacing gas piped from Russia.
Earlier, Adnoc Gas signed a massive deal with French multi-energy company TotalEnergies Gas and Power Limited, a subsidiary of TotalEnergies, to supply LNG for three years.
