IOC has signed long-term LNG import deals with UAE-based Abu Dhabi Gas Liquefaction Company Limited (ADNOC) and France-based TotalEnergies. As per agreements, ADNOC will supply 1.2 million tonnes per annum of LNG for 14 years, starting in 2026, whereas TotalEnergies will supply 0.8 million tonnes a year of LNG for 10 years starting in 2026.
Jul 17, 2023
IOC recently signed deals with UAE-based Abu Dhabi Gas Liquefaction Company Limited (ADNOC) and France-based TotalEnergies, for the import of LNG on a long term basis. The company’s deal with ADNOC requires the import of 1.2 million tonnes per annum of LNG from ADNOC for 14 years, starting in 2026. The deal with TotalEnergies is for the import of 0.8 million tonnes a year of LNG for 10 years starting in 2026. This deal marks TotalEnergies’ first long-term deal with an Indian company. Moreover, this is also the first time an Indian company signed a long-term LNG import deal with ADNOC. The deals were signed by IOC during Prime Minister Narendra Modi’s recent visit to France and the UAE.
As per the list of agreements put out by the Ministry of External Affairs, a “Head of Agreement (HoA) (was signed) between Indian Oil Corporation Limited and TotalEnergies Gas and Power Limited (TotalEnergies) to establish a long-term LNG sale and purchase agreement (SPA).” IOC is setting up new deals following the government’s goal of increasing the share of natural gas in the energy basket to 15 per cent by 2030 from the current 6.2 per cent. As per officials, India has a CEPA (Comprehensive Economic Partnership Agreement) with the UAE government, providing for zero customs duty to be applied on LNG imports from UAE against an applicable customs duty of 2.5 per cent plus surcharge.
India has seven LNG import facilities on the east and west coasts. IOC operates a 5 million tonne a year import terminal at Ennore in Tamil Nadu.