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The two firms signed the 15-year deal for 1 million metric tonnes per annum of LNG.
The deal was first announced by the Abu Dhabi Media Office and the Indian government on Monday.
Sate-owned Adnoc released a statement on Tuesday saying the LNG supplies will be primarily sourced from its Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi, and is expected to start commercial operations in 2028.
The LNG cargoes will be shipped to Indian Oil’s destination ports in India.
Both Indian Oil and GAIL had previously signed long-term agreements for 1.2 mmtpa and 0.5 mmtpa, respectively, with Adnoc.
In July last year, Adnoc Gas, Adnoc’s new gas and LNG unit, said it had signed a long-term deal to supply LNG to India’s top state oil refiner Indian Oil.
Adnoc Gas said will supply up to 1.2 million mt to Indian Oil over a period of 14 years.
According to the firm, the agreement is worth in the range of $7 billion to $9 billion.
The new agreement “further strengthens Adnoc’s position in India’s fast-growing energy market,” Adnoc said.
“By 2029, Indian Oil is expected to become Adnoc’s biggest LNG customer, with a total offtake of 2.2 mmtpa, comprising 1.2 mmtpa from Das Island and 1 mmtpa from Ruwais LNG,” it said.
Prior to this deal, Adnoc signed a heads of agreement with Japan’s Osaka Gas for 0.8 mitpa of LNG.
The agreement with Indian Oil is one of several long-term LNG sales commitments Adnoc has signed with international partners for Ruwais LNG for over 70 percent of the project’s total production capacity, it said.
Ruwais LNG
State-owned Adnoc announced in June the final investment decision on the Ruwais project and the EPC award.
Prior to that, Adnoc issued in March this year a limited notice to proceed for early engineering, procurement, and construction activities to the joint venture.
Besides this EPC deal, Adnoc Gas also awarded US energy services firm Baker Hughes a contract for the LNG export terminal.
Baker Hughes will provide two electric liquefaction systems (e-LNG) for the Ruwais LNG project.
BP, Mitsui & Co., Shell, and TotalEnergies also agreed to buy a 10 percent equity stake in Adnoc’s LNG export terminal.
Adnoc will retain a 60 percent majority stake.
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 currently owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
(Updated with a statement by Adnoc.)