IndianOil to become ADNOC’s largest LNG customer with solidified agreement

ADNOC has signed a long-term agreement to supply LNG to Indian Oil Corp. Ltd.

The 15-year sales and purchase agreement (SPA), which converts a previous heads of agreement, calls for ADNOC to supply 1 million tonnes/year (tpy) of LNG sourced primarily from ADNOC’s Ruwais LNG project project under development in Al Ruwais Industrial City, Abu Dhabi.

Under the terms of the SPA, LNG cargoes can be delivered to any port across India, ADNOC said in a release Aug. 27.

By 2029, IndianOil is set to become ADNOC’s largest LNG customer, with a total offtake of 2.2 million tpy comprised of 1.2 million tpy from ADNOC’s Das Island operations and 1 million tpy from the Ruwais LNG project, ADNOC said.

Ruwais LNG

ADNOC’s Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, is expected to begin commercial operations in 2028. The project is comprised of two 4.8-million tpy liquefaction trains for total production capacity of 9.6 million tpy. Currently, over 8 million tpy of that capacity has been committed to international customers through long-term agreements, ADNOC said.