The leading refiner in the nation, Indian Oil Corp, has agreements in place with France's TotalEnergies and the Abu Dhabi Gas Liquefaction Co Ltd (ADNOC LNG) of the United Arab Emirates to import liquefied natural gas (LNG) for the long term. During Prime Minister Narendra Modi's visit to France and the UAE last week, the two agreements were inked. According to two different assertions made by the Indian business, supplies under the two agreements will start in 2026.
ADNOC LNG would provide up to 1.2 million tpy of LNG to IOC over a 14-year period thanks to a trade agreement between India and the UAE that exempts LNG imports from a 2.5% import tax. This is the first time an Indian company has partnered with ADNOC on a long-term LNG import agreement. Under the 10-year agreement, TotalEnergies would provide 0.8 million tpy of LNG to IOC, the company stated. IOC would get LNG from TotalEnergies' global portfolio.
India plans to increase the proportion of gas in its energy mix from 6.2% to 15% by 2030, therefore companies there are investing billions of dollars to upgrade its gas infrastructure and look for long-term LNG import agreements.
IOC's agreements are also the most recent in a string of long-term contracts that Asian LNG importers have signed in recent months. State-owned Petrobangla of Bangladesh inked two LNG supply agreements in June: one with QatarEnergy for a 15-year period beginning in 2026 and one with OQ Trading, formerly known as Oman Trading International, for a 10-year period.
QatarEnergy's signing of 27-year contracts with Sinopec and the China National Petroleum Corporation (CNPC), Chinese importers Zhejiang Energy and ENN have also recently agreed to 20-year contracts to receive supply from the United States. In the meantime, Qatar and Thailand's state-controlled PTT are in advanced negotiations for a 15-year LNG supply agreement for 1 or 2 million tonnes per year.
