That is the primary time an Indian firm has signed a long-term LNG import cope with Adnoc.
New Delhi:
India’s high oil agency IOC has signed a USD 7-9 billion deal to import liquefied pure fuel (LNG) from the UAE’s ADNOC Fuel plc for 14 years starting 2026, the UAE firm mentioned.
Indian Oil Company (IOC) signed the deal as additionally the same pact with TotalEnergies of France throughout Prime Minister Narendra Modi’s go to to France and the UAE final week.
In an announcement, ADNOC Fuel mentioned the settlement with IOC for the export of as much as 1.2 million tonne each year (mmtpa) of LNG is “valued within the vary of USD 7 billion to USD 9 billion over its 14-year time period, signifies a significant step ahead within the partnership between the 2 trade leaders.” The cope with TotalEnergies Fuel and Energy Ltd (TotalEnergies) is for the import of 0.8 million tonne a yr of LNG for 10 years beginning 2026.
That is the primary long-term deal TotalEnergies has signed with an Indian firm. Additionally, that is the primary time an Indian firm has signed a long-term LNG import cope with Adnoc.
TotalEnergies is the third largest LNG provider on the planet and can be supplying LNG to IOC from their diversified portfolio internationally.
“The landmark deal marks one other vital milestone for ADNOC Fuel because it expands its international attain, reinforcing its place as a world LNG export accomplice of selection, and reaffirming IOC as its key strategic accomplice within the LNG market,” the assertion mentioned.
Commenting on the settlement, Ahmed Alebri, Chief Government Officer of ADNOC Fuel, mentioned the long-term LNG sale deal additional strengthens the longstanding partnership with IOC.
“We look ahead to increasing our collaboration and take satisfaction within the data that ADNOC Fuel’ LNG exports will additional assist the event of IOC and contribute to India’s progress story.” Beneath the phrases of the settlement, ADNOC Fuel will ship as much as 1.2 mmtpa of LNG to IOC in India. “The deal serves as a testomony to ADNOC Fuel’ potential to fulfill the rising international demand for LNG, a vital gasoline within the power transition,” the assertion mentioned.
IOC is stitching new offers consistent with the federal government purpose of accelerating the share of pure fuel within the power basket to fifteen per cent by 2030 from the present 6.2 per cent.
Lengthy Time period LNG contracts play an essential position in balancing out the inherent volatility of spot LNG market and thus make it an inexpensive and dependable LNG provide.
These agreements wouldn’t solely diversify the provision supply of LNG for IOC but additionally would assist in assembly the rising demand for cleaner and extra sustainable gasoline sources, an official mentioned.
ADNOC Fuel is the nationwide oil and fuel firm of the Abu Dhabi authorities and is the oldest provider of pure fuel from the Center East.
India and UAE have a CEPA (Complete Financial Partnership Settlement) with UAE Govt which gives for zero customs obligation to be utilized on LNG imports from the UAE in opposition to an relevant customs obligation of two.5 per cent plus surcharge, the official added.
LNG is a pure fuel that has been cooled to minus 162 levels Celsius, altering it from a fuel right into a liquid that’s 1/600th of its authentic quantity. This enables it to be shipped in specifically designed LNG vessels.
India has seven LNG import services on the east and west coasts. IOC operates a 5 million tonne a yr import terminal at Ennore in Tamil Nadu.
(Aside from the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)
