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BPCL said on Friday the deal with Adnoc Trading, a unit of Adnoc Gas, is “designed as a medium to long-term agreement, allowing BPCL to broaden its LNG sourcing portfolio and thus ensure competitive and dependable gas supplies to cater to India’s escalating energy needs.”
According to BPCL, this is its first LNG sourcing contract linked to the Henry Hub index.
BPCL said LNG deliveries under this contract are slated to begin in 2025.
However, the firm did not provide further details regarding the deal.
Local reports suggest the deal is for five years and 0.45 million tonnes per year.
Adnoc in LNG expansion
Adnoc Gas just signed a 14-year sales and purchase agreement with Indian Oil.
Under this SPA, Adnoc Gas will supply up to 1.2 mtpa of LNG to Indian Oil.
Adnoc Gas said this agreement converts the previous heads of agreement between the parties, with first deliveries to begin in 2026.
Moreover, the agreement is valued in the range of $7 billion to $9 billion over its 14-year term, it said.
State-owned Adnoc owns a 70 percent stake in Adnoc LNG, which currently produces about 6 mtpa of LNG from its facilities on Das Island.
Also, in November 2024, Adnoc Gas said it expects to spend about $5 billion to buy a 60 percent operating interest from its parent company Adnoc in the 9.6 mtpa Al Ruwais LNG export plant.
BP, Mitsui & Co., Shell, and TotalEnergies agreed to buy a 10 percent equity stake in Adnoc’s second LNG export terminal.
The LNG project will more than double Adnoc’s existing UAE LNG production capacity to around 15 mtpa, as the company builds its international LNG portfolio.
Adnoc is also expanding its international LNG presence. Last year, the firm purchased a stake in the first phase of NextDecade’s Rio Grande LNG export terminal in Texas.