IOC signs $7-9 bn LNG Deal with ADNOC and TotalEnergies
OIL & GAS

IOC signs $7-9 bn LNG Deal with ADNOC and TotalEnergies

Indian Oil Corporation (IOC), India's leading oil firm, has recently entered into two significant liquefied natural gas (LNG) import deals, as announced by the UAE's ADNOC Gas plc. The first deal, valued between $7 billion to $9 billion, spans 14 years and will see IOC importing up to 1.2 million tonnes per annum (mmtpa) of LNG from ADNOC Gas, starting in 2026. This agreement represents a significant advancement in the partnership between the two industry leaders.

Additionally, during Prime Minister Narendra Modi's recent visits to France and the UAE, IOC also signed a similar pact with TotalEnergies of France. This deal, lasting for ten years starting in 2026, will involve the import of 0.8 million tonnes per year of LNG.

Notably, this marks the first long-term agreement between TotalEnergies and an Indian company, and it is also the first time an Indian company has signed a long-term LNG import deal with ADNOC.

TotalEnergies, the world's third-largest LNG supplier, will supply LNG to IOC from its diverse portfolio across the globe. The deal has been hailed as a significant milestone for ADNOC Gas, expanding its global reach and solidifying its position as a preferred global LNG export partner, with IOC being a key strategic ally in the LNG market.

Ahmed Alebri, the CEO of ADNOC Gas, expressed excitement about strengthening the longstanding partnership with IOC and contributing to India's growth story through this long-term LNG sale deal.

The agreement commits ADNOC Gas to deliver up to 1.2 mmtpa of LNG to IOC in India, helping to fulfill the country's goal of increasing the share of natural gas in its energy mix to 15 per cent by 2030, up from the current 6.2 per cent.

Long-term LNG contracts are crucial in stabilising the inherently volatile spot LNG market, ensuring an affordable and reliable supply of LNG. These new deals not only diversify the supply source of LNG for IOC but also align with the growing demand for cleaner and more sustainable fuel sources in India.

The UAE's ADNOC Gas, the national oil and gas company of Abu Dhabi, has a rich history as the oldest supplier of natural gas from the Middle East.

India and the UAE have a Comprehensive Economic Partnership Agreement (CEPA), which grants LNG imports from the UAE a zero customs duty, whereas imports from other sources attract a customs duty of 2.5 per cent plus surcharge.

LNG is natural gas that has been cooled to an extremely low temperature of minus 162 degrees Celsius, transforming it into a liquid with only 1/600th of its original volume, making it feasible for transportation in specialised LNG vessels.

India currently has seven LNG import facilities on its east and west coasts, with IOC operating a 5 million tonne per year import terminal at Ennore in Tamil Nadu.
Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

Indian Oil Corporation (IOC), India's leading oil firm, has recently entered into two significant liquefied natural gas (LNG) import deals, as announced by the UAE's ADNOC Gas plc. The first deal, valued between $7 billion to $9 billion, spans 14 years and will see IOC importing up to 1.2 million tonnes per annum (mmtpa) of LNG from ADNOC Gas, starting in 2026. This agreement represents a significant advancement in the partnership between the two industry leaders.Additionally, during Prime Minister Narendra Modi's recent visits to France and the UAE, IOC also signed a similar pact with TotalEnergies of France. This deal, lasting for ten years starting in 2026, will involve the import of 0.8 million tonnes per year of LNG.Notably, this marks the first long-term agreement between TotalEnergies and an Indian company, and it is also the first time an Indian company has signed a long-term LNG import deal with ADNOC.TotalEnergies, the world's third-largest LNG supplier, will supply LNG to IOC from its diverse portfolio across the globe. The deal has been hailed as a significant milestone for ADNOC Gas, expanding its global reach and solidifying its position as a preferred global LNG export partner, with IOC being a key strategic ally in the LNG market.Ahmed Alebri, the CEO of ADNOC Gas, expressed excitement about strengthening the longstanding partnership with IOC and contributing to India's growth story through this long-term LNG sale deal.The agreement commits ADNOC Gas to deliver up to 1.2 mmtpa of LNG to IOC in India, helping to fulfill the country's goal of increasing the share of natural gas in its energy mix to 15 per cent by 2030, up from the current 6.2 per cent.Long-term LNG contracts are crucial in stabilising the inherently volatile spot LNG market, ensuring an affordable and reliable supply of LNG. These new deals not only diversify the supply source of LNG for IOC but also align with the growing demand for cleaner and more sustainable fuel sources in India.The UAE's ADNOC Gas, the national oil and gas company of Abu Dhabi, has a rich history as the oldest supplier of natural gas from the Middle East.India and the UAE have a Comprehensive Economic Partnership Agreement (CEPA), which grants LNG imports from the UAE a zero customs duty, whereas imports from other sources attract a customs duty of 2.5 per cent plus surcharge.LNG is natural gas that has been cooled to an extremely low temperature of minus 162 degrees Celsius, transforming it into a liquid with only 1/600th of its original volume, making it feasible for transportation in specialised LNG vessels.India currently has seven LNG import facilities on its east and west coasts, with IOC operating a 5 million tonne per year import terminal at Ennore in Tamil Nadu.

Next Story
Infrastructure Urban

Nagpur Body Collects Rs 836 Million in Property Tax as Scheme Ends

The Nagpur Municipal Corporation (NMC) concluded its property tax rebate scheme on December 31, 2024, amassing Rs 836 million from 1,63,813 property owners between July 1 and December 31. The scheme offered a 10% rebate for online payments and 5% for offline payments, incentivising many to clear their dues. However, a significant number of taxpayers missed the opportunity. Earlier in the financial year, NMC introduced higher rebates of up to 15% for online payments and 10% for offline payments for dues cleared before June 30, 2024. This earlier phase of the scheme resulted in Rs 768.5 mil..

Next Story
Infrastructure Energy

Tata Power Invites EoI for 500 MW Renewable Energy Procurement

Tata Power Trading Company (TPTCL), a subsidiary of Tata Power, has released an Expression of Interest (EoI) to procure up to 500 MW of renewable energy, encompassing solar, wind, hybrid, hydroelectric projects, or green attributes for a contract period of up to 25 years. Interested bidders must submit their proposals by January 31, 2025. The procurement scope includes off-taking energy or green attributes generated from renewable projects, with flexibility for physical or virtual procurement. The delivery point will be the interconnection between the project and the central or state transmi..

Next Story
Infrastructure Urban

Andhra Pradesh to Lift Ban on 22A Lands, Resurvey to Begin January 20

The Andhra Pradesh government has announced plans to lift the ban on 22A lands, a move aimed at benefiting economically disadvantaged groups. District collectors have been instructed to submit reports within three days, detailing the number and categories of 22A lands in their jurisdictions. Additionally, the state will restart a comprehensive land resurvey on January 20. Revenue Minister Anagani Satya Prasad criticised the previous government for allegedly misusing 22A provisions to harass landowners and facilitate land grabbing. He stated that 450,000 acres were unlawfully exempted from the..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000