IOC Signs $7-9 Billion LNG Import Deal with UAE Firm

India Strengthens Energy Ties with UAE and Global Partners

New Delhi: The largest oil business in the nation, Indian Oil Corporation (IOC), has signed a long-term contract with ADNOC Gas of the United Arab Emirates to import LNG for a total estimated value of $7 billion to $9 billion over the course of the next 14 years. This agreement will support India’s plan to increase the use of natural gas in its energy mix by providing IOC with 1.2 million tonnes of LNG per year beginning in 2026.

Major LNG Supply Agreement with ADNOC Gas
Announced at the India Energy Week (IEW), this landmark agreement reflects the growing energy cooperation between India and the UAE. According to ADNOC Gas, the LNG would come from its Das Island liquefaction facility, a well-known facility with a 6 million-ton yearly output capability. Das Island has successfully delivered more than 3,500 LNG shipments worldwide since its founding.

The CEO of ADNOC Gas, Fatema Al Nuaimi, stressed that this agreement supports India’s goal of using 15% of its total energy consumption from natural gas by 2030 and further enhances UAE-India energy ties. An earlier Heads of Agreement that was reached between the two entities last year is formalized by the contract.

Other Key LNG Agreements at IEW
India’s push for energy diversification was evident with multiple LNG supply deals signed at IEW 2024:

BPCL & ADNOC Gas: Bharat Petroleum Corporation Ltd (BPCL) secured a contract with ADNOC Gas for 2.4 million tonnes of LNG over a 5-year period starting in April 2025, with an option to extend for another five years.
Gujarat State Petroleum Corporation Ltd. (GPSC) and French energy giant TotalEnergies inked a 10-year LNG supply agreement, with TotalEnergies pledging to provide 400,000 tonnes annually starting in 2026. Delivered to India’s west coast, the LNG will serve residential and commercial clients as well as CNG-powered automobiles. It comes from TotalEnergies’ global portfolio.
India’s access to greener fuel sources was further expanded last year when IOC and TotalEnergies inked a 10-year LNG supply agreement.

India Expands LNG Trade Beyond Imports
In a historic first, India has entered the LNG export market. In order to export 1,000 tons of LNG per year to Nepal using cryogenic trucks from the Dhamra Terminal in Odisha, IOC and Yogya Holdings Nepal struck a sales agreement. With an annual volume of 240 tons, this five-year agreement is India’s first LNG sale to Nepal.

BPCL Investigates Alternative and Renewable Energy
BPCL is actively investing in alternative energy and biofuel projects: Wave Energy Pilot in Mumbai: BPCL partnered with Eco Wave Power to launch India’s first wave energy project, a 100 kW pilot designed to harness the country’s vast wave energy potential.
Sweet Sorghum for Bioethanol: An inventive endeavor to turn sweet sorghum into bioethanol is being undertaken by BPCL and the National Sugar Institute (NSI), Kanpur. NSI is currently looking for industrial partners to scale up production after successfully demonstrating the viability of this strategy. Establishing production techniques, assisting farmers, and creating an economical bioethanol value chain are the main objectives of the collaboration.

India’s Dedication to a Future with Sustainable Energy
Through LNG imports, renewable energy technologies, and the development of biofuels, these accords demonstrate India’s commitment to enhancing its energy security. India is positioned as a major player in the changing global energy environment thanks to its strategic alliances with major players in the industry, such as ADNOC Gas, TotalEnergies, and Petrobras.

With natural gas poised to become a major component of India’s energy mix, these initiatives will drive the country toward a cleaner, more sustainable energy future while enhancing its economic and industrial growth.