ADNOC signs 15-year LNG supply deal with Indian Oil

The company is set to supply 1 million metric tons per annum of LNG through its Ruwais project.

ADNOC is partnering with Indian Oil with the signing of a supply deal for liquefied natural gas (LNG) spanning 15 years. 

The agreement is set to involve approximately 1 million metric tons per annum of LNG, which will mainly come from the company’s Ruwais  location, according to a report by Reuters. Recently, mobility giants such as Shell, TotalEnergies and bp joined the project through a 10% interest each.

With the Ruwais facility set to begin operations by 2028, the company sees LNG and alternative energies as some of the pillars for its future development.

The project involves two plants capable of producing 4.8 million tons per annum (mtpa) of LNG each. This is set to more than double ADNOC's LNG capacity to 15 mtpa.

Through it, ADNOC is expected to compete with other LNG giants of the region, such as Qatar and Saudi Arabia. The former is currently one of the leading exporters of LNG while the latter has been recently investing in developing LNG capabilities.

Indian Oil joins Shell, Mitsui, Osaka Gas, and more companies worldwide that have already signed agreements for LNG supply from Ruwais.