By Nabimara Benson
In a significant move to bolster its position in the global energy market, the United Arab Emirates’ largest oil producer, Abu Dhabi National Oil Company (ADNOC), has secured a 15-year Sales and Purchase Agreement (SPA) with Indian Oil Corporation Ltd (IndianOil), India’s leading integrated and diversified energy company. This landmark deal, announced on August 27, 2025, marks a pivotal step in ADNOC’s strategy to line up more binding contracts for its new export terminal at Ruwais, reinforcing its role as a reliable global supplier of liquefied natural gas (LNG).
Under the terms of the agreement, ADNOC will supply 1 million tonnes per annum (mtpa) of LNG to IndianOil, primarily sourced from the under-construction Ruwais LNG project, which is set to commence commercial operations in 2028. This deal converts a previous Heads of Agreement into a definitive pact, underscoring the deepening energy ties between the UAE and India. By 2029, IndianOil is poised to become ADNOC’s largest LNG customer, with a total offtake of 2.2 mtpa, including 1.2 mtpa from ADNOC’s existing Das Island operations and 1 mtpa from the Ruwais facility.
The Ruwais LNG project, comprising two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa, is a cornerstone of ADNOC’s ambition to more than double its LNG production capacity to approximately 15 mtpa. To date, over 8 mtpa of the project’s capacity has been committed to international customers, reflecting strong global demand for ADNOC’s lower-carbon LNG. The project aligns with the UAE’s commitment to providing cleaner energy solutions, as the Ruwais facility will operate on clean power, positioning it as a key player in the transition to a sustainable energy future.
For India, the agreement supports its ambitious goal to increase the share of natural gas in its energy mix to 15% by 2030, up from the current 6.2%. As the world’s fourth-largest LNG importer, India faces growing energy demand that domestic production alone cannot meet, making long-term import deals like this critical. The flexibility of the SPA, which allows LNG cargoes to be delivered to any port across India, further enhances the country’s energy security and supports its infrastructure expansion plans, despite challenges with bottlenecks.
“This long-term agreement with IndianOil underscores the robust energy relations between the UAE and India,” said Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President of Marketing. “It highlights confidence in the Ruwais LNG project, which is integral to ADNOC’s strategy to expand our global LNG footprint to meet growing demand today while helping the world transition to a cleaner energy future.”
The deal also reflects the success of the Comprehensive Economic Partnership Agreement (CEPA) signed between the UAE and India in 2022, which has fostered deeper bilateral trade and energy cooperation. ADNOC’s focus on securing long-term LNG contracts extends beyond India, with recent agreements signed with buyers from Germany, Japan, and Malaysia, including a 15-year deal with Germany’s SEFE for 1 mtpa and another with EnBW Energie Baden-Wuerttemberg AG for 0.6 mtpa, both starting in 2028.
ADNOC’s sharpened focus on the gas market comes at a time of heightened global competition for LNG, spurred by events such as the Russian invasion of Ukraine in 2022, which increased Europe’s demand for alternative gas supplies. The company’s strategic investments, including a $2.5 billion IPO of its gas business in March 2023 and plans to acquire a 60% stake in the Ruwais LNG project in 2028, position it to compete with regional rivals like Qatar and Saudi Arabia in the rapidly growing LNG market.
As ADNOC continues to line up more binding contracts for its new export terminal, this agreement with IndianOil not only strengthens its global LNG portfolio but also solidifies the UAE’s role as a key energy partner for India, supporting the latter’s energy transition and economic growth. With first deliveries from the Ruwais project expected in 2028, this deal marks a significant milestone in the enduring partnership between the two nations.
