Indian Oil Signs Pact For 14-year LNG Supply Pact with UAE’s ADNOC

Indian Oil Corporation (IOC), India’s largest state-owned oil and gas enterprise, is engaged in refining, marketing, and distributing petroleum products. 

Secured Long-Term Deal with UAE

In a landmark agreement, IOC has secured a long-term deal worth between USD 7 billion and USD 9 billion to import Liquefied Natural Gas (LNG) from the United Arab Emirates (UAE) over a 14-year period, commencing in 2026.

Under this strategic pact, ADNOC Gas will supply up to 1.2 million tonnes per annum (mtpa) of LNG to IOC from its Das Island liquefaction facility. The agreement was formalised on the sidelines of India Energy Week (IEW), marking a significant milestone in the enduring energy collaboration between the two entities.

“This agreement, valued at USD 7-9 billion over its 14-year tenure, is a major leap forward in our partnership with IOC. We are committed to supporting India’s ambition to increase natural gas to 15% of its primary energy mix by 2030,” ADNOC Gas stated.

This deal with IOC represents the second major LNG supply agreement that ADNOC Gas has inked with an Indian firm at IEW. Earlier, it signed a five-year deal with Bharat Petroleum Corporation Ltd (BPCL) to supply 2.4 million tonnes of LNG, starting April 2025, with a provision to extend for an additional five years upon mutual agreement.

LNG Footprints

Separately, French energy giant TotalEnergies has entered into an agreement to supply 400,000 tonnes per year of LNG to Gujarat State Petroleum Corporation Ltd (GSPC) for a 10-year term, starting in 2026. 

The LNG, sourced from TotalEnergies’ global portfolio, will be delivered to terminals on India’s west coast and will cater to GSPC’s industrial clientele, domestic households, commercial businesses, and CNG-powered vehicles such as auto-rickshaws.

Notably, TotalEnergies had previously, in June last year, secured a 10-year deal to supply 800,000 tonnes of LNG annually to IOC from 2026 onwards. While GSPC operates an LNG import facility in Mundra, Gujarat, IOC has the flexibility to import LNG at Dahej, Gujarat, or at its Ennore terminal in Tamil Nadu.

Share Price Performance 

At 2:30 PM on February 14, 2025, Indian Oil Corporation Ltd shares traded at ₹117.50 per share on the NSE.

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