Adnoc Gas and its subsidiaries (Adnoc Gas), a world-class integrated gas processing company, announced a 14-year sales and purchase agreement (SPA) with Indian Oil Corporation Ltd (IndianOil) for the export of up to 1.2 million tonnes per annum (mtpa) of liquefied natural gas (LNG) to India’s largest integrated and diversified energy company.
This agreement converts the previous Heads of Agreement between the parties into an SPA, with first deliveries to begin in 2026.
The agreement, signed by Adnoc Gas and IndianOil, is valued in the range of $7 billion to $9 billion over its 14-year term, and signifies a major step forward in the partnership between the two industry leaders.
Fatema Al Nuaimi, Adnoc Gas CEO, said, “This agreement strengthens our long-standing partnership with IndianOil and is a testament to the dynamic and robust energy ties between the UAE and India. As a reliable and responsible supplier of lower-carbon gas, Adnoc Gas looks forward to supporting India’s plans to make gas 15 per cent of its primary energy basket by 2030.”
The agreement builds on Adnoc Gas’ strategy to expand its customer base, following a series of LNG agreements signed over the past two years. These deals range from 0.4 MTPA to 1.2 MTPA. They are for periods ranging up to 14 years and reinforce its position as a leading supplier of reliable, lower-carbon LNG to key growth markets in Asia, such as India.
The LNG will be supplied from Adnoc Gas’ Das Island liquefaction facility, which has a production capacity of up to 6 mtpa. As the world’s third longest-operating LNG plant, Das Island has shipped over 3,500 LNG cargoes worldwide since starting operations.
Adnoc Gas and its subsidiaries today announced record earnings for the full year (FY) 2024 of $5 billion and its highest quarterly income of $1.38 billion since its IPO. Fatema Al Nuaimi, Chief Executive Officer of Adnoc Gas, said, “Our record-breaking fourth quarter results demonstrate our ability to deliver on our ambitious growth strategy as we seek to realise Ebitda growth of over 40 per cent by 2029.
“Adnoc Gas’ evolution into one of the highest income generating companies listed in the UAE, which is a testament to our commitment to create long-term and sustainable value for our shareholders, as we invest in growth projects to meet the growing demand for lower carbon Domestic Gas, LPG and LNG, both locally and globally as key fuels in the energy transformation.”
For the full-year period, adjusted net income increased by 13 per cent year-on-year to $5 billion. The company’s strong performance was underpinned by robust demand for domestic gas, which supported volume growth and improved pricing. Total sales volumes in FY 2024 increased by 2 per cent to 3,616 million MMBTU. This increase in volume was enabled by a 13 per cent increase in the ADNOC LNG (ALNG) joint venture contribution.
Adjusted revenues increased by 7 per cent YoY in FY 2024 to $24.43 billion, driven by a 2 per cent increase in sales volume and improved pricing.
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