Abu Dhabi's ADNOC announced on Tuesday that it has signed an agreement to supply liquefied natural gas (LNG) to Indian Oil Corporation for a duration of 14 years, valued at between seven to nine billion dollars. The statement added that the agreement stipulates the supply of up to 1.2 million metric tons of LNG annually to India. Indian Oil Corporation mentioned in a statement released on Monday that the agreement was signed during Prime Minister Narendra Modi's visit to the UAE earlier in the week, adding that the trade agreement between India and the UAE enables it to import LNG without paying the 2.5 percent import tax.
Indian companies are spending billions of dollars to enhance their gas infrastructure and are currently exploring the possibility of entering into long-term agreements to import LNG, as the country aims to increase the share of gas in its energy mix to 15 percent by 2030, up from 6.2 percent currently.
Abu Dhabi National Oil Company (ADNOC) is focusing on the gas market amid rising competition for LNG since the Russian invasion of Ukraine in February 2022, as Europe, in particular, requires large quantities of it to compensate for the reduced Russian gas supplies. ADNOC raised approximately 2.5 billion dollars in March through the sale of nearly five percent of its gas unit in an initial public offering.
