Abu Dhabhi National Oil Company(Adnoc) offers India a stake in upcoming deployment
Abu Dhabi’s state-run Abu Dhabi National Oil Company (Adnoc) has offered India a stake in its upcoming LNG liquefaction terminal at Ruwais
Marking India’s first potential equity stake in an overseas LNG terminal. This move aims to bolster energy security for India, the world’s third-largest energy consumer. In conjunction, Indian Oil Corp Ltd (IOC) plans to sign a long-term agreement to purchase one million metric tonnes per annum (mmtpa) of LNG from Adnoc. The LNG project at Al Ruwais Industrial City will feature two 4.8-mmtpa LNG liquefaction trains, doubling Adnoc’s production capacity to approximately 15 mmtpa. Adnoc has already secured agreements with Germany’s SEFE Marketing & Trading Singapore Pte Ltd, EnBW Energie Baden-Württemberg AG, and China’s ENN Natural Gas. India imports around 55% of its gas needs, with LNG imports rising 17.5% year-on-year to 23.5 mmtpa in FY24, driven by demand from the fertilizer, power, and city gas distribution sectors.
IOC has previously secured a supply of 1.2 mmtpa of LNG from Adnoc starting in 2026 and has long-term contracts with TotalEnergies and QatarEnergy LNG for additional LNG imports. The partnership with Adnoc enhances India’s energy security and helps Indian firms gain a global foothold. Adnoc has been a key partner in various strategic initiatives, including India’s strategic crude oil reserve program and participating interests in Abu Dhabi’s oil concessions. India has also secured exploration rights in Abu Dhabi and pursued other collaborations with Adnoc. The Russia-Ukraine conflict has underscored the need for stable, long-term LNG contracts, following disruptions from Russia’s Gazprom. This strategic engagement with the UAE, which holds significant crude and natural gas reserves, is critical for India, especially in light of volatile global gas markets.
[Image Source: MEP MiddleEast]
