"ADNOC and Indian Oil Sign Long-Term LNG Supply Agreement"

Recently, the Ministry of Petroleum & Natural Gas (MoPNG) announced that Indian Oil Corporation (IOCL) has signed a 15-year agreement with Abu Dhabi National Oil Company (ADNOC) for the supply of 1 million tonnes of liquefied natural gas (LNG) annually.

In addition to the LNG supply agreement, a memorandum of understanding (MoU) was signed between ADNOC and the Indian Strategic Petroleum Reserve Limited (ISPRL) for the leasing of storage space. Furthermore, a production concession agreement was finalized between Urja Bharat (a joint venture of IOCL and Bharat Petro Resources) and ADNOC for Abu Dhabi Onshore Block 1.

These agreements and MoUs were signed during the two-day official visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi, starting September 9. This marks the Crown Prince’s first official visit to India in this role.

MoPNG noted that the long-term LNG supply agreement is for 1 million tonnes per annum (mtpa) and is the third such contract established with ADNOC in just over a year. IOCL and GAIL previously secured long-term agreements with ADNOC for 1.2 mtpa and 0.5 mtpa, respectively. These contracts are expected to enhance India’s energy security by diversifying its LNG sources.

The MoU between ADNOC and ISPRL will explore additional opportunities for crude storage in India and renew the existing storage and management agreement, which has been in place since 2018 at ISPRL’s Mangalore Cavern.

The Production Concession Agreement for Abu Dhabi Onshore Block 1 is notable as it is the first such agreement for an Indian company operating in the UAE. This agreement will enable Urja Bharat to bring crude oil to India, further contributing to the country’s energy security.

HBL