BPCL to Receive 2.5 Million Tons of LNG from ADNOC

Bharat Petroleum Corporation Ltd (BPCL) has signed a five-year deal with Abu Dhabi National Oil Company (ADNOC) for the supply of 2.5 million tons of liquefied natural gas (LNG), according to news reports. The agreement will see BPCL receiving 40 cargoes over the contract period, with deliveries starting in April, as per news roports.

In the first two years, the supply will be lower and will gradually increase over time. No further details were provided about the specific volume distribution across the years.

Deal to Be Signed at India Energy Week

News reports indicate that the agreement will be formalised during the India Energy Week conference, a four-day event where multiple energy-related discussions and deals are taking place.

ADNOC’s Additional Agreement with IOC

Apart from the BPCL deal, ADNOC is also expected to sign a separate 15-year LNG supply agreement with Indian Oil Corporation (IOC). This agreement, which was originally made in September last year, will begin LNG deliveries from April 2025.

India’s LNG Imports and Plans

India is currently the fourth-largest importer of LNG in the world. The country is aiming to increase the share of natural gas in its total energy mix from 6.2% to 15% by 2030. This shift is part of a broader plan to reduce reliance on conventional fossil fuels.

Indian companies are also looking at alternative LNG suppliers, including the United States. Oil Secretary Pankaj Jain mentioned on Monday that discussions are underway to explore additional sources.

Market Performance

As of February 11, 10:39 AM, Bharat Petroleum Corporation Ltd (BPCL) is trading at ₹258.50, down ₹1.40 (0.54%)for the day. Over the past month, the stock has declined by 2.53%, while its year-to-date performance shows a deeper drop of 12.43%.

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