ADNOC Gas inks $9bn LNG supply agreement with Indian Oil Corporation

ADNOC Gas plc has signed a landmark 14-year LNG supply agreement with Indian Oil Corporation Ltd (IndianOil), reinforcing its long-standing partnership with India’s largest integrated energy company. The deal, valued between $7 billion and $9 billion, will see ADNOC Gas export up to 1.2 million tonnes per annum (MTPA) of liquefied natural gas (LNG) to India, with deliveries set to commence in 2026.

The agreement marks a significant step in ADNOC Gas’ efforts to expand its LNG footprint in Asia, where natural gas demand is surging as nations shift toward cleaner energy solutions. This long-term contract also underscores the UAE’s commitment to strengthening energy ties with India, a key market for lower-carbon LNG as the country aims to boost gas consumption to 15% of its primary energy mix by 2030.

How Does This LNG Supply Agreement Impact India’s Energy Market?

India’s reliance on natural gas as a transition fuel has intensified amid its push for energy security and reduced carbon emissions. The ADNOC Gas-Indian Oil Corporation agreement aligns with India’s broader energy strategy, providing a stable and diversified supply of LNG to support industrial growth, transportation, and urban expansion.

Fatema Al Nuaimi, CEO of ADNOC Gas, highlighted the significance of the agreement, stating that it solidifies ADNOC Gas’ position as a trusted LNG supplier for India while contributing to the country’s decarbonization objectives. She emphasized that ADNOC Gas is committed to ensuring long-term supply stability while supporting India’s ambition to enhance the role of natural gas in its energy mix.

The deal builds upon ADNOC Gas’ ongoing efforts to expand its LNG portfolio, following several agreements signed in the past two years. These contracts, ranging from 0.4 MTPA to 1.2 MTPA, span up to 14 years, reinforcing ADNOC Gas’ position as a leading supplier of lower-carbon LNG to Asia.

What Role Does ADNOC Gas’ Das Island Facility Play in LNG Exports?

The LNG under this agreement will be sourced from ADNOC Gas’ Das Island liquefaction facility, which has a production capacity of up to 6 MTPA. As one of the world’s longest-operating LNG plants, Das Island has exported over 3,500 LNG cargoes since its inception, playing a pivotal role in the UAE’s global energy strategy.

Das Island’s advanced infrastructure ensures efficient LNG processing and delivery, with ADNOC Gas leveraging its expertise to provide secure and sustainable LNG shipments. This facility’s strategic location further enhances ADNOC Gas’ ability to serve key Asian growth markets, such as India, China, and Japan.

How Is ADNOC Gas Strengthening Its Global LNG Position?

The LNG supply agreement with IndianOil is part of ADNOC Gas’ broader expansion strategy, aimed at solidifying its presence in high-growth markets. Over the past year, ADNOC Gas has increased its LNG supply commitments, positioning itself as a key player in the global transition toward cleaner fuels.

This latest deal aligns with ADNOC Gas’ vision of sustainable energy growth, ensuring long-term revenue stability while meeting the increasing demand for low-carbon energy sources. The company’s recent financial performance further underscores its strength, with record-breaking earnings reported for 2024.

What Were ADNOC Gas’ 2024 Financial Results?

On February 6, 2025, ADNOC Gas announced its highest-ever net income of $5 billion for 2024, surpassing market expectations. The company also reported an adjusted revenue of $24.43 billion, reflecting a 7% year-on-year increase.

CEO Fatema Al Nuaimi attributed this success to ADNOC Gas’ strong operational efficiency, increased LNG sales volumes, and enhanced pricing strategies. She emphasized the company’s goal of achieving EBITDA growth of over 40% by 2029, driven by strategic investments and expanding LNG partnerships.

ADNOC Gas also confirmed a $3.41 billion dividend payout for 2024, reflecting a 5% annual increase, reinforcing its commitment to delivering long-term shareholder value. The free cash flow of $4.58 billion further highlights the company’s financial stability, ensuring sustainable growth in the years ahead.

What Is the Future of ADNOC Gas’ LNG Strategy?

Looking ahead, ADNOC Gas is scaling up its LNG production capabilities, with a $15 billion CAPEX plan for 2025-2029. This includes the acquisition of ADNOC’s 60% stake in the Ruwais LNG project, a low-carbon intensity facility set to enhance ADNOC Gas’ export capacity by 2028.

With growing demand for sustainable and lower-carbon LNG, ADNOC Gas is well-positioned to expand its market reach while maintaining its status as a leading global LNG supplier. The company’s long-term LNG agreements with India and other Asian markets are expected to drive revenue growth and energy transition efforts, reinforcing ADNOC Gas’ commitment to a more sustainable future.