Agreement Details
ADNOC has finalized a 15-year Sales and Purchase Agreement (SPA) with Indian Oil Corporation Ltd (IndianOil) for the supply of 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG). This agreement transitions a previous Heads of Agreement into a definitive contract, emphasizing ADNOC's expanding presence in the Asian LNG market.
Ruwais LNG Project
The Ruwais LNG project, located in Al Ruwais Industrial City, Abu Dhabi, is set to begin commercial operations in 2028. The facility will have a production capacity of 9.6 mtpa, with over 8 mtpa already committed to international customers through long-term agreements. The project will feature two 4.8 mtpa liquefaction trains and will be the first in the Middle East to operate on clean power.
Strategic Implications
By 2029, IndianOil is expected to become ADNOC's largest LNG customer, with a total offtake of 2.2 mtpa, including 1.2 mtpa from ADNOC's Das Island operations. This agreement supports India's growing energy needs and enhances its energy security. The SPA also reflects the success of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India, signed in 2022.
Future Developments
ADNOC Gas plans to acquire a 60% stake in the Ruwais LNG project by the second half of 2028. Upon completion, ADNOC Gas's operated LNG production capacity will increase to approximately 15 mtpa. The project will utilize advanced technologies, including AI, to improve safety, efficiency, and sustainability.
