India’s top oil firm, IOC, has signed a USD 7-9 billion deal with the UAE’s ADNOC Gas plc to import liquefied natural gas i.e. LNG import agreement for 14 years starting in 2026. The deal was signed during Prime Minister Narendra Modi’s recent visit to France and the UAE, where IOC also inked a similar pact with TotalEnergies of France. The agreement with ADNOC Gas involves exporting up to 1.2 million tonnes per annum (mmtpa) of LNG and is valued between USD 7 billion to USD 9 billion over the 14-year term.
Additionally, IOC signed a deal with TotalEnergies for the import of 0.8 million tonnes per year of LNG for 10 years starting in 2026. This is the first long-term deal TotalEnergies has signed with an Indian company and the first time an Indian company has entered into a long-term LNG import agreement with ADNOC.
TotalEnergies, the third-largest LNG supplier globally, will supply LNG to IOC from its diverse portfolio across the world. The deal marks a significant milestone for ADNOC Gas as it expands its global reach and strengthens its position as a global LNG export partner. It also reaffirms IOC’s status as a key strategic partner in the LNG market. The agreement allows ADNOC Gas to deliver up to 1.2 mmtpa of LNG to IOC in India, supporting the country’s growing demand for LNG, a crucial fuel in the energy transition.
The deal aligns with IOC’s efforts to increase the share of natural gas in India’s energy basket to 15% by 2030, up from the current 6.2%. Under the terms of the agreement, UAE’s ADNOC Gas, the national oil and gas company of Abu Dhabi, will enjoy a zero customs duty on LNG imports to India, in line with the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE.
LNG is natural gas that has been cooled to minus 162 degrees Celsius, transforming it into a liquid that occupies only 1/600th of its original volume, making it suitable for transportation in specially designed LNG vessels. India currently has seven LNG import facilities on its east and west coasts, with IOC operating a 5 million tonne per year import terminal in Ennore, Tamil Nadu.
