Adnoc, Indian Oil finalize Ruwais LNG supply deal

The 15-year deal is for 1 million metric tonnes per annum of LNG, sourced primarily from Adnoc’s lower-carbon Ruwais LNG project.

Adnoc noted in a statement on Wendesday that the SPA converts a previous heads of agreement announced last year into a definitive agreement.

Under the terms of the SPA, LNG cargoes can be delivered to any port across India, supporting the country’s growing energy needs and enhancing its energy security, according to Adnoc.

By 2029, IndianOil is set to become Adnoc’s largest LNG customer, with a total offtake of 2.2 mtpa – comprising 1.2 mtpa from Adnoc’s Das Island operations and 1 mtpa from the Ruwais LNG project.

Earlier this year, Adnoc Gas, the gas and LNG unit of Adnoc, signed a 14-year sales and purchase agreement with Indian Oil for Das Island volumes.

Adnoc owns a 70 percent stake in Adnoc LNG, which produces about 6 mtpa of LNG from its facilities on Das Island.

In June 2024, it made the final investment decision to build its LNG export terminal in UAE’s Al Ruwais.

Also, Adnoc Gas said in November 2024 that it expects to spend about $5 billion to buy a 60 percent operating interest from its parent company Adnoc in the Al Ruwais LNG export plant.

The LNG project will consist of two 4.8 mtpa trains with a total capacity of 9.6 mtpa, more than doubling Adnoc’s existing UAE LNG production capacity to around 15 mtpa.

Adnoc’s Ruwais LNG project is expected to commence commercial operations in 2028.

To date, over 8 mtpa of the project’s 9.6 mtpa production capacity has been committed to international customers through long-term agreements, according to Adnoc.