The Abu Dhabi National Oil Company (ADNOC) has finalized a 15-year agreement to supply Indian Oil Corporation with 1 million metric tons of liquefied natural gas (LNG) annually, according to the Abu Dhabi Media Office.
The LNG will primarily be sourced from ADNOC’s Ruwais LNG project, as stated by the government media office. ADNOC has bold aspirations for gas and LNG, considering them, along with renewable energy and petrochemicals, as essential pillars for future growth.
Moreover, ADNOC has granted Shell, BP, TotalEnergies, and Japan’s Mitsui each a 10 percent stake in the Ruwais project, which is anticipated to commence production in late 2028. The project will operate on clean energy and will feature two plants, each capable of producing 4.8 million tons per annum (mtpa) of LNG, effectively more than doubling ADNOC’s LNG capacity to 15 mtpa.
Additional LNG supply agreements
Additionally, ADNOC has entered into other LNG supply agreements from Ruwais with companies including Shell, Mitsui, Osaka Gas, China’s ENN, and Germany’s EnBW and SEFE.
Globally, energy companies are ramping up their investments in LNG, which is natural gas cooled to minus 160°C, as it is increasingly recognized as a vital fuel for the transition to cleaner energy.
Shell, the largest private LNG trader, projected in its global outlook in February that LNG demand is expected to surge by 50 percent by 2040, especially as countries like China and other developing Asian nations shift from coal to this cleaner alternative.
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