ADNOC Gas of Abu Dhabi [ADNOCGAS:UH] has revealed a significant deal with Indian Oil Corp [IOCL:IN], which entails the supply of liquefied natural gas (LNG) over a period of 14 years, as reported by Reuters on July 18. The agreement, valued at an estimated USD7bn to USD9bn, was officially announced during Prime Minister Narendra Modi’s recent visit to the United Arab Emirates. Indian Oil Corp confirmed the deal in a statement, highlighting that India’s trade treaty with the UAE exempts LNG imports from a 2.5% import tax. With the objective of increasing the share of gas in its energy mix from the current 6.2% to 15% by 2030, Indian companies are making substantial investments in their gas infrastructure and actively seeking long-term LNG import arrangements.
In response to the growing competition for LNG following the Russian invasion of Ukraine in February 2022, ADNOC, the state-backed oil giant, has intensified its focus on the gas market. European countries, in particular, are seeking large volumes of LNG to replace gas imports from Russia. ADNOC previously conducted an IPO in March, generating approximately USD2.5bn by selling around 5% of its gas business.