Indian Oil Corporation (IOC), India’s largest oil company, has signed a significant long-term agreement with ADNOC Gas to import Liquefied Natural Gas (LNG). The deal, valued between USD 7 billion and USD 9 billion, spans 14 years and involves the supply of 1.2 million tonnes of LNG annually starting in 2026.

The agreement was formalized during India Energy Week, highlighting the growing energy cooperation between India and the UAE. ADNOC Gas stated that this sales and purchase agreement will see LNG exported from its Das Island liquefaction facility, reinforcing the partnership with IOC as India aims to increase the share of gas in its primary energy mix to 15 percent by 2030.

This new agreement is the second LNG supply deal that ADNOC Gas signed at the event, following a similar arrangement with Bharat Petroleum Corporation Ltd (BPCL) to deliver 2.4 million tonnes of LNG over five years, commencing in April 2025, with an option to extend for another five years. Meanwhile, French energy firm TotalEnergies has also secured a deal to supply 400,000 tonnes of LNG annually to Gujarat State Petroleum Corporation Ltd (GPSC) for a decade starting in 2026.

ADNOC Gas CEO Fatema Al Nuaimi emphasized that the new agreement solidifies the long-standing relationship with IOC and reflects the robust energy ties between the UAE and India. She noted that ADNOC Gas is committed to supporting India’s energy plans, particularly in increasing the share of natural gas. The Das Island facility, notable for being one of the world’s longest-operating LNG plants, has a production capacity of up to 6 million tonnes per year and has delivered over 3,500 LNG cargoes globally.

In addition to the new agreements, IOC also marked a milestone by signing its first LNG export agreement with Yogya Holdings Nepal to export around 1,000 tonnes of LNG to Nepal, facilitated by cryogenic trucks from the Dhamra Terminal in Odisha. Other significant contracts announced at India Energy Week include BPCL’s partnership with Petrobras for the import of Brazilian crude and BPCL’s collaboration with Eco Wave Power to develop India’s first wave energy project.

These developments underscore India’s ongoing efforts to enhance energy security and diversify its energy sources, marking a pivotal moment in the nation’s energy landscape.