India has finalized a ten-year liquefied natural gas supply agreement with ADNOC, valued at $3 billion. This marks one of the largest deals for the energy-importing nation.
Under the terms, ADNOC will deliver 500,000 tons of liquefied gas to Hindustan Petroleum Corp. in India, as reported by Reuters.
"India is now the UAE's largest customer and a very important part of ADNOC Gas' LNG strategy," the Emirati company stated. The LNG agreement forms part of a wider investment framework between India and the UAE, anticipated to reach around $200 billion in value. Last year, ADNOC also secured a long-term LNG supply contract with Indian Oil Corp., involving 1.2 million tons annually over 15 years, estimated at $7 billion to $9 billion.
The UAE has been working to increase its LNG production and export capabilities, focusing on its Ruwais LNG project in Abu Dhabi. According to the UAE, Ruwais LNG will be the Middle East and North Africa's first LNG export facility powered by clean energy.
The project will feature two liquefaction trains, each with an annual capacity of 4.8 million tons. This will more than double ADNOC's current domestic LNG production capacity to approximately 15 million tons per year.
Ruwais LNG has already entered into significant long-term offtake agreements, including with Germany and Shell. The deal with Hindustan Petroleum Corp. now adds to these commitments. Abu Dhabi's national oil company indicated last year that commercial operations at the plant are scheduled to begin by the end of 2028.
India, a major LNG importer, remains price-sensitive, similar to its approach with crude oil. This has driven Indian energy suppliers to pursue long-term supply deals that offer more predictable pricing.