Published On:June 5 2024
Story Viewed 565 Times

Abu Dhabi’s Adnoc Offers India Stake in New LNG Liquefaction Terminal

State-run Abu Dhabi National Oil Company (Adnoc) has offered India a stake in its upcoming LNG liquefaction terminal at Ruwais in Abu Dhabi. Concurrently, Indian Oil Corp Ltd (IOC) plans to sign a long-term LNG deal to purchase one million metric tonnes per annum (mmtpa) of clean fuel from Adnoc, according to two sources familiar with the development.

If finalized, this would mark India's first equity stake in an overseas LNG terminal, bolstering energy security efforts for the world's third-largest energy consumer. This development underscores the growing partnership between India and the UAE, an OPEC member. Prime Minister Narendra Modi has visited the UAE seven times in the past nine years, while UAE President Sheikh Mohamed bin Zayed Al Nahyan has visited India four times. Additionally, India has signed a free-trade agreement with the UAE. "Conversations are on at the government-to-government level," said one of the sources.

The LNG project at Al Ruwais Industrial City will feature two 4.8-mmtpa LNG liquefaction trains, totaling a capacity of 9.6 mmtpa. This will double Adnoc’s LNG production capacity to approximately 15 mmtpa. Adnoc has already secured three LNG agreements from the project with Germany’s SEFE Marketing & Trading Singapore Pte Ltd, EnBW Energie Baden-Württemberg AG (EnBW), and China’s ENN Natural Gas.

An Adnoc spokesperson, responding to Mint’s queries, stated, "We don’t comment on market speculation," but added that "Adnoc’s lower-carbon Ruwais LNG project continues to progress toward the final investment decision, expected this year."

India imports around 55% of its gas requirement to meet growing demand from its fertilizer, power, and city gas distribution sectors. According to the Petroleum Planning and Analysis Cell (PPAC), India’s LNG imports increased 17.5% year-on-year by volume in FY24 to 23.5 mmtpa.

LIVEMINT





OUR OTHER PRODUCTS & SERVICES: Projects Database | Tenders Database | About Us | Contact Us | Terms of Use | Advertise with Us | Privacy Policy | Disclaimer | Feedback

This site is best viewed with a resolution of 1024x768 (or higher) and supports Microsoft Internet Explorer 4.0 (or higher)
Copyright © 2016-2024

Technology Partner - Pairscript Software