IOC signs $7-9 billion long-term LNG import deal with UAE firm

Indian Oil Corporation (IOC), the nation's largest oil firm, has signed a USD 7-9 billion deal to import LNG from UAE on a long-term 14-year contract.

IOC signed a long-term deal to receive 1.2 million tonnes per year of LNG from the United Arab Emirates beginning 2026 for 14 years.

"ADNOC Gas has signed a 14-year sales and purchase agreement with Indian Oil Corporation Ltd (IOC) for the export of up to 1.2 million tonnes per annum (mtpa) of Liquefied Natural Gas (LNG) to India's largest integrated and diversified energy company which will be supplied from Das Island liquefaction facility," ADNOC Gas said in a statement.

The deal was signed on the sidelines of India Energy Week here.

"The agreement, valued in the range of USD 7 billion to USD 9 billion over its 14-year term signifies a major step forward in the partnership with IOC and we look forward to supporting India's plans to make gas 15 per cent of its primary energy basket by 2030," it added.

The deal with IOC is the second LNG supply deal that the UAE giant signed with an Indian firm at the IEW. It signed a deal with Bharat Petroleum Corporation Ltd (BPCL) to supply 2.4 million tonnes of LNG over a period of 5 years, starting April 2025. The agreement is extendable by another 5 years with mutual consent.

Separately, French energy giant TotalEnergies signed a deal to sell 4,00,000 tonnes a year of LNG to Gujarat State Petroleum Corporation Ltd (GPSC) for 10 years starting 2026.

The LNG, sourced from TotalEnergies' global portfolio and delivered to terminals on India's west coast, will primarily serve GSPC's industrial customers.

It will also supply Indian households for domestic use, businesses, and service stations for vehicles running on Compressed Natural Gas (CNG), such as auto-rickshaws.

TotalEnergies had in June last year signed a deal to sell 8,00,000 tonnes a year of LNG to state-owned Indian Oil Corporation (IOC) for 10 years starting 2026.

While GSPC has an LNG import facility at Mundra in Gujarat, IOC can import the LNG at Dahej in Gujarat or at its Ennore terminal in Tamil Nadu.

ADNOC Gas plc and its subsidiaries signed a 14-year sales and purchase agreement (SPA) with IOC which converts the last year's Heads of Agreement signed by them. First deliveries will begin in 2026.

Fatema Al Nuaimi, ADNOC Gas CEO, said: "This agreement strengthens our long-standing partnership with IOC and is a testament to the dynamic and robust energy ties between the UAE and India. As a reliable and responsible supplier of lower-carbon gas, ADNOC Gas looks forward to supporting India's plans to make gas 15 per cent of its primary energy basket by 2030." The agreement builds on ADNOC Gas' strategy to expand its customer base, following a series of LNG agreements signed over the past two years. These deals range from 0.4 million tonnes per annum to 1.2 million tonnes. They are for periods ranging up to 14 years and reinforce its position as a leading supplier of reliable, lower-carbon LNG to key growth markets in Asia, such as India.
The LNG will be supplied from ADNOC Gas' Das Island liquefaction facility, which has a production capacity of up to 6 million tonnes per annum. As the world's third longest-operating LNG plant, Das Island has shipped over 3,500 LNG cargoes worldwide since starting operations.

Other agreements signed at IEW include BPCL inking an optional term contract with Brazil's Petrobras for the import of Brazilian crude grades up to 6 million barrels. This is another milestone towards India's energy security and diversification of its sources.

Also, India signed its first LNG export agreement when the IOC signed a sales agreement with Yogya Holdings Nepal for the export of around 1,000 tonnes of LNG to Nepal. It will be the first-ever sale of LNG to Nepal from India by cryogenic trucks through Dhamra Terminal in Odisha. Contract for 5 years with an annual quantity of 240 tonnes per annum.

BPCL has also partnered with Eco Wave Power to develop India's first wave energy pilot project, leveraging the nation's substantial wave energy potential as a sustainable and commercially viable renewable resource.

The proposed system for BPCL will utilize Eco Wave Power's proven wave energy converter technology, demonstrating wave energy in Mumbai through a 100 kW pilot installation.

BPCL also signed a MoU with the National Sugar Institute (NSI), Kanpur, UP.

The National Sugar Institute (NSI), Kanpur, renowned for its expertise in sugar and allied industries, has successfully demonstrated the potential of sweet sorghum for bioethanol production at its in-house facility. NSI is now seeking an industrial partner to scale up this technology.

BPCL has partnered with NSI for establishing production systems, capacity building for farmers, and onboarding value chain partners. It also focuses on piloting sweet sorghum for juice-based bioethanol production and cost estimation.