IEW 2025: ADNOC Gas signs 14-year LNG supply agreement with Indian Oil Corporation

ADNOC Gas has signed a 14-year sales and purchase agreement with Indian Oil Corporation Ltd. for the export of up to 1.2 million mt/year of LNG to the state-owned Indian company, with first deliveries scheduled to start in 2026, ADNOC Gas announced Feb. 12, which coincides with the India Energy Week 2025.

As part of the agreement, LNG will be supplied from ADNOC Gas' Das Island liquefaction facility, which has a production capacity of up to 6 million mt/year, the company said in a statement.

As the world's third-longest operating LNG plant, Das Island has shipped over 3,500 LNG cargoes worldwide since starting operations, according to ADNOC Gas.

This agreement between the two players, which is valued in the range of $7 billion-$9 billion over its 14-year term, converts the previous Heads of Agreement between the parties into an SPA and is a "major step forward" in the partnership, the company said.

"As a reliable and responsible supplier of lower-carbon gas, ADNOC Gas looks forward to supporting India's plans to make gas 15% of its primary energy basket by 2030," ADNOC Gas CEO Fatema Al Nuaimi said.

The agreement is also in line with ADNOC Gas' strategy to expand its customer base, following a series of LNG agreements signed over the past two years. These deals range from 0.4 million-1.2 million mt/year and are for periods ranging up to 14 years, reinforcing the company's position as a supplier of reliable, lower-carbon LNG to key growth markets in Asia, such as India, ADNOC Gas said.

ADNOC Gas supplies around 60% of the UAE's gas sales and supplies end-customers in over 20 countries.

Platts, part of S&P Global Commodity Insights assessed the JKM -- the benchmark price reflecting LNG delivered to Northeast Asia -- for March at $16.497/MMBtu on Feb. 12, down 43.2 cents/MMBtu, or 2.55%, from the Feb. 11 Asian close.