Indian Oil's Strategic LNG Import Deals with ADNOC LNG and TotalEnergies

New Delhi: Indian Oil Corporation (IOC), one of India's leading state-owned oil and gas companies, has made significant strides in securing its energy future. It has signed two substantial long-term deals to import liquefied natural gas (LNG) from Abu Dhabi Gas Liquefaction (ADNOC LNG) and TotalEnergies Gas and Power.

The deal with ADNOC LNG stands as a landmark development, as it involves the supply of up to 1.2 million tonnes of LNG per annum to IOC for an extended period of 14 years, beginning in 2026. 

This strategic move showcases India's increasing economic ties with the United Arab Emirates, a key global energy player.

In a parallel development, IOC has also penned a deal with TotalEnergies Gas and Power. According to the agreement, TotalEnergies will supply 0.8 million tonnes per annum of LNG to Indian Oil. The contracts were signed during Prime Minister Narendra Modi's recent visits to France and the UAE, underscoring the strategic importance of these agreements.

These agreements are a significant part of India's broader energy strategy. The Indian government is aiming to increase the share of natural gas in the country's energy mix from the current 6.2% to 15% by the year 2030. 

These long-term LNG import deals, along with increased investments in gas infrastructure, are critical steps towards achieving this target.

The news of these strategic deals was well-received in the market, with IOC shares trading at an impressive INR97.53 ($1.31) at the time of the announcement. 

These deals highlight Indian Oil Corporation's proactive approach to securing the country's energy future, aligning with global trends, and fostering international collaborations in the energy sector. 

As India continues to expand its energy footprint and diversify its energy sources, such strategic agreements are likely to become increasingly common.