MUMBAI: Two of India’s biggest state-run oil companies will this week sign agreements to buy liquefied natural gas (LNG) from Abu Dhabi National Oil Co, as the world’s most populous nation looks to secure long-term supplies to meet growing energy demand.
Indian Oil Corp will buy up to 1.2 million tonnes a year of LNG from Adnoc, valued at over US$7bil for the 14-year period of the deal starting 2026, according to a government statement.
Bharat Petroleum Corp is looking to receive 2.5 million tonnes of the fuel from the United Arab Emirates company over five years starting April, with an option to extend it by another five years.
The deals highlight India’s plan to more than double the share of gas in its energy mix by the end of this decade, even as infrastructure bottlenecks are constraining the expansion.
For Adnoc, it’s another step to lock in long-term customers for its LNG export capacity following binding agreements with companies from Germany to Malaysia. — Bloomberg
