Business & Economy

UAE’s Adnoc gas strikes 14-year LNG deal with India

Cairo, Jul 19 (EFE).- Abu Dhabi’s Adnoc Gas has announced a 14-year deal with Indian Oil Corp to supply 1.2 million metric tons of Liquefied Natural Gas (LNG) per year worth between 7 and 9 billion dollars, Emirati media reported Wednesday.

The landmark deal “signifies a major step forward in the partnership between the two industry leaders,” and reaffirms “IOCL as its key strategic partner in the LNG market,” Adnoc said in a statement.

Ahmed Alebri, Chief Executive Officer of Adnoc Gas, said the deal further strengthened “the long-standing partnership with IOCL.”

“We look forward to expanding our collaboration and take pride in the knowledge that ADNOC Gas’ LNG exports will further support the development of IOCL and contribute to India’s growth story,” Alebri was quoted as saying by the WAM Emirates news agency.

Although the deal was struck during Indian Prime Minister Narendra Modi’s visit to the UAE on Saturday, details of the agreement were not announced until Tuesday.

During his visit to Abu Dhabi, Modi finalized negotiations for a rupee-dirham payment mechanism to boost bilateral trade with the UAE, as New Delhi seeks to reduce its dependence on the dollar.

The contract penned over the weekend comes amid growing global demand for gas, and after the recent 27-year deal neighboring Qatar struck with the China National Petroleum Corporation (CNPC).

On June 20, Qatar Energy announced it would supply 4 million metric tons of LNG per year to China, in what is the Gulf nation’s second major agreement with a Chinese company in less than a year after it struck a similar deal with China’s Sinopec in late 2022. EFE


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