Indian Oil Corporation (IOC), the country's largest energy integrated company, has inked a historic 14-year deal with UAE's ADNOC Gas. The USD 7-9 billion deal ensures long-term 1.2 million tonnes of liquefied natural gas (LNG) annually from 2026. The signing of the deal is a landmark moment in strengthening India-UAE energy cooperation and solidifying the role of LNG in India's energy diversification policy.
India aims for natural gas to comprise 15% of its core energy portfolio by 2030, and this deal is at the centre of making that happen. While demand for cleaner energy sources across the world increases, LNG has been at the forefront of driving a low-carbon future. ADNOC Gas' supply to its Das Island liquefied natural gas facility, which is among the world's oldest LNG plants, supports India's focus on sustainability and energy security.
IOC's agreement is a part of a broader trend in the Indian energy sector, which is increasingly shifting towards diversifying its sources. This is due to the fact that the UAE has also signed an agreement with Bharat Petroleum Corporation Ltd (BPCL) for five years for 2.4 million tonnes of LNG. Moreover, global players like TotalEnergies have signed long-term LNG supply deals with Indian companies, offering a diversified and stable energy supply.
The agreement is also in consonance with India's greater strategic interests of forging global partnerships to meet its growing energy requirements while reducing carbon emissions. This partnership with ADNOC Gas not only responds to the short-term need for LNG but also responds to long-term aspirations for a cleaner, greener energy future.
On the whole, the IOC-ADNOC Gas transaction is not just a question of LNG supply security; it is a move towards strengthening the energy security and sustainability goals of both countries. With these strategic transactions, India will be accelerating its transition to a diversified and sustainable energy economy.
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