ADNOC has signed 15-year agreement with Indian Oil Corp. Ltd. (IndianOil) for the delivery of 1 million tonnes/year (tpy) of LNG, primarily sourced from ADNOC’s lower-carbon Ruwais LNG project under development in Al Ruwais Industrial City, Abu Dhabi.
Under the agreement, LNG cargoes will be shipped to IndianOil’s destination ports in India, ADNOC said in a release Sept. 10.
ADNOC made a final investment decision to proceed with the Ruwais LNG project earlier this year and has let contracts for engineering, procurement, and construction (OGJ Online, June 14, 2024). The project will consist of two natural gas liquefaction trains with a total LNG production capacity of 9.6 million tpy.
When completed, it will more than double ADNOC’s LNG production target capacity to 15 million tpy to meet increased global demand for natural gas. It is expected to start commercial operations in 2028.
By 2029, IndianOil is expected to become ADNOC’s largest LNG customer, with total offtake of 2.2 million tpy, comprising 1.2 million tpy from Das Island and 1 million tpy from Ruwais LNG, the operator said.
The agreement with IndianOil is one of several long-term LNG sales commitments ADNOC has signed with international partners for Ruwais LNG for over 70% of the project’s total production capacity.