Abu Dhabi National Oil Company (ADNOC) has signed a Heads of Agreement with Indian Oil Corporation (IndianOil) for the supply of one million tonnes per annum of liquefied natural gas (LNG).
Under terms of the deal, ADNOC will supply IndianOil with LNG from its Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi.
The LNG produced at the site for IndianOil will be shipped to destination ports in India
Commercial operations at the plant are expected to commence in 2028 and the plant will have a capacity of 9.6 million tonnes per annum, with two liquefaction trains with a capacity of 4.8 million tonnes per annum.
It is thought that the plant will more than double ADNOC’s currently LNG production.
Rashid Khalfan Al Mazrouei, Senior Vice-President of Marketing at ADNOC, said, “India is a strategic partner of the UAE. This agreement underscores ADNOC’s commitment to delivering secure, lower-carbon energy to support the country’s energy security.”
He also noted that the agreement highlighted confidence in the Ruwais LNG project.
By 2029, IndianOil is expected to become ADNOC’s biggest LNG customer, with a total offtake of 2.2 million tonnes per annum. This is made up from the offtake of 1.2 million tonnes per annum from Das Island and the Ruwais LNG deal.
Read more: ADNOC Gas signed $7bn-9bn supply deal with IndianOil
The agreement with IndianOil is one of several long-term LNG commitments ADNOC has signed with partners for Ruwais LNG. Over 70% of the project’s capacity has already been preliminary sold through the deals.
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