Indian Oil, a government-owned enterprise, has signed lucrative agreements worth billions with France’s Total Energies and Abu Dhabi’s Adnoc. According to the list of agreements released by the Ministry of External Affairs, Indian Oil Corporation Limited and Total Energies Gas and Power Ltd (TotalEnergies) have signed a Head of Agreement (HoA) to establish a long-term LNG Sale and Purchase agreement (SPA).
Multibillion-Dollar Agreements and Competitive LNG Supply
Under the terms of the agreement, Adnoc will provide a supply of up to 1.2 million tonnes per year (mtpa) of LNG for a period of 14 years, while Total Energies will supply 0.8 mtpa for 10 years from its global portfolio, both commencing in 2026. Additionally, a “comprehensive economic cooperation agreement” with Abu Dhabi will enable shipments from Adnoc to be economical, as Indian Oil Corporation (IOC) will be exempt from paying a 2.5% duty.
Historic Milestones in the LNG Industry
Total Energies has made history by signing its inaugural long-term agreement with an Indian company, marking a significant milestone. Moreover, this marks the first-ever long-term LNG import deal between an Indian company and Adnoc. As the third largest global LNG supplier, Total Energies will provide Indian Oil Corporation (IOC) with LNG from their diverse portfolio spanning the globe. On the other hand, ADNOC LNG, the national oil and gas company of the Abu Dhabi government, has the distinction of being the longest-standing supplier of natural gas from the Middle East.
About Indian Oil Corporation Limited
Indian Oil Corporation Limited, an Indian multinational oil and gas company, operates under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. With its headquarters located in New Delhi, Indian Oil holds the distinction of the largest government-owned oil producer in India. It ranked 142nd on the Fortune Global 500 list of the world’s largest corporations as of 2022.
Indian Oil Corporation (IOC) is actively forging new agreements in alignment with the government’s objective of raising the share of natural gas in the energy mix to 15 percent by 2030.
Key takeaways for competitive examinations
- Indian Oil Corporation Limited Chairman: Shrikant Madhav Vaidya