IndianOil to Become ADNOC’s Largest LNG Buyer from 2029
IndianOil Corporation has signed a major deal with Abu Dhabi National Oil Company (ADNOC) that will change the global LNG trade. Starting in 2029, IndianOil will be ADNOC’s biggest LNG customer.
This new agreement secures supplies of 2.2 million tonnes per year (mtpa) for IndianOil. Out of this, 1.2 mtpa will come from ADNOC’s Das Island facilities, while 1 mtpa will be sourced from the upcoming Ruwais LNG project.
The 15-year sales and purchase agreement (SPA) highlights the strong energy ties between India and the United Arab Emirates. It also shows ADNOC’s growing presence in the fast-growing Asian LNG market.
Why This LNG Deal Matters
India’s energy demand is rising quickly. The country’s industries, households, and transport systems are consuming more energy every year. To meet this demand, India is turning to natural gas, which is cleaner than coal and oil.
LNG, or liquefied natural gas, will play a central role in India’s plan to increase gas use. The government wants gas to make up 15% of its energy mix by 2030, compared to only 6% today.
This deal with ADNOC gives IndianOil a reliable and long-term supply of LNG. It supports India’s goals for both energy security and cleaner growth.
ADNOC’s Focus on Asia
ADNOC is one of the largest energy companies in the world. In recent years, it has been expanding its LNG business to meet growing demand.
Asia is the biggest market for LNG, with countries like India, China, and Japan leading consumption. For ADNOC, strengthening ties with IndianOil gives it a strong foothold in this region.
ADNOC also made it clear that LNG deliveries can go to any port in India. This flexibility will help IndianOil meet energy needs across the country.
Rashid Khalfan Al Mazrouei, ADNOC’s Senior Vice-President of Marketing, said: “This long-term agreement with IndianOil underscores the robust energy relations between the UAE and India.”
The Ruwais LNG Project
A key part of this agreement is the Ruwais LNG project. Located in Al Ruwais Industrial City, this facility is under development and will start operations in 2028.
What makes Ruwais unique is that it will be the first LNG plant in the Middle East to run fully on clean energy. This means lower carbon emissions and more sustainable production.
The plant will have a total capacity of 9.6 mtpa. Already, more than 8 mtpa of that has been booked by customers through long-term agreements. IndianOil’s 1 mtpa share ensures it has access to some of the cleanest LNG in the world.
A Stronger UAE–India Partnership
India and the UAE share a strong trade and investment relationship. Energy is a major part of this partnership.
India is the UAE’s second-largest trading partner. At the same time, the UAE is one of India’s biggest sources of crude oil and LNG. This new deal strengthens that bond even further.
It also supports wider agreements between the two nations, such as the Comprehensive Economic Partnership Agreement (CEPA), signed in 2022. CEPA aims to increase trade and cooperation across multiple sectors.
Supporting India’s Energy Transition
India has ambitious climate goals. It is working to cut emissions while still meeting the needs of its growing economy. Natural gas, especially LNG, is a cleaner fuel option compared to coal and oil.
By 2030, India wants to use gas for 15% of its total energy. However, domestic production is not enough to reach this target. That is why LNG imports are so important.
This agreement gives IndianOil a secure supply of LNG that will fuel industries, power homes, and support city gas distribution networks. It will also help India reduce pollution while keeping up with economic growth.
ADNOC’s Global LNG Reach
ADNOC has already signed multiple long-term contracts with international buyers. More than 80% of the Ruwais plant’s future capacity is booked. This shows high demand for ADNOC’s LNG.
By supplying to both Asia and Europe, ADNOC is positioning itself as a global LNG leader. Deals like the one with IndianOil confirm its role as a reliable and sustainable supplier.
LNG in the Middle East’s Future
The Middle East has traditionally focused on oil exports. But the global shift to cleaner fuels is pushing countries to expand in natural gas.
The Ruwais project is a milestone. It shows how the region can lead in producing lower-carbon LNG. This approach may inspire other Gulf nations to follow, making the Middle East a hub for clean energy exports.
Benefits for IndianOil
For IndianOil, this deal is more than just about supply. It also offers flexibility and security.
ADNOC’s LNG can be delivered to any Indian port. This makes it easier for IndianOil to supply its refineries, terminals, and distribution networks.
India’s LNG infrastructure is also growing fast. By 2030, the country’s regasification capacity is expected to exceed 70 mtpa. That means IndianOil will have the systems in place to handle and distribute the gas efficiently.
Building Global Energy Security
Energy markets today face many challenges. Prices are volatile, and geopolitical issues often affect supply. Long-term LNG deals like this one bring stability.
By locking in 15 years of supply, IndianOil ensures that India’s energy needs are protected. At the same time, ADNOC gains a reliable customer in one of the fastest-growing economies in the world.
Such agreements are important not only for India and the UAE but also for global energy security.
