UAE company signs agreement on the supply of LNG to India for $7-9 billion

By Rhod Mackenzie

The Emirati company ADNOC Gas, which is a subsidiary of the Abu Dhabi National Oil Company ADNOC, has entered into an agreement with Indian Oil Corporation to supply India with up to 1.2 million tons of liquefied natural gas (LNG) per year. This was part of a statement posted on ADNOC Gas' profile on the Abu Dhabi Stock Exchange on Tuesday.

ADNOC Gas announced today that it has entered into an agreement with Indian Oil Corporation Ltd (IOCL) to supply up to 1.2 million tons of liquefied natural gas per year for a period of 14 years. The amount of the transaction is from $7 to $9 billion, the company noted.

“We are pleased to announce this long-term LNG sales contract, which will further strengthen our longstanding partnership with IOCL. We are looking forward to expanding our cooperation and are proud that ADNOC Gas LNG exports will further advance IOCL and contribute to India's history of development,” a spokesman said.

The UAE is one of the leading oil exporters in the world. They also seek to expand their presence in the gas market. According to the Statista portal, in 2021 the country ranked third in terms of LNG supplies to India, with the country's share being 13%.