IndianOil & ADNOC Gas are Behind the Future of LNG in India
India is making significant strides towards a cleaner energy future with liquefied natural gas (LNG) becoming increasingly pivotal in its energy strategy.
A deal between Abu Dhabi's ADNOC Gas and IndianOil marks a significant leap in this direction.
Under this new arrangement, ADNOC Gas will supply up to 1.2 million tons per annum of LNG to India, a deal estimated to value between US$7bn and US$9bn over 14 years.
This substantial agreement aligns with India's goal to integrate natural gas into 15% of its primary energy matrix by 2030.
The LNG will be sourced from ADNOC Gas's Das Island facility, a veteran in the global LNG sector that has dispatched more than 3,500 cargoes globally since its inception.
Deepening energy ties
The collaboration not only cements the existing relationship between ADNOC Gas and IndianOil, India's largest integrated energy enterprise, but also transitions a prior Heads of Agreement into a robust long-term sales and purchase agreement.
This pact illustrates the growing synergy between two of the fastest-expanding energy markets globally.
“This agreement strengthens our long-standing partnership with IndianOil and is a testament to the dynamic and robust energy ties between the UAE and India,” says Fatema Al Nuaimi, CEO of ADNOC Gas.
“As a reliable and responsible supplier of lower-carbon gas, ADNOC Gas looks forward to supporting India’s plans to make gas 15% of its primary energy basket by 2030.”
For ADNOC Gas, this is more than a transaction.
It's a strategic expansion into crucial Asian markets, with agreements ranging from 0.4 to 1.2 million tonnes per year, lasting up to 14 years, reflecting the company's central role in the lower-carbon LNG market.
LNG's critical role in India's energy landscape
India's progression to a more sustainable energy infrastructure is gradual.
The country still depends heavily on coal and oil, both major pollution and emission contributors.
Although renewable resources like solar and wind are scaling up, they require a consistent base load power source to ensure grid stability.
LNG, especially in its liquefied form, is considered vital for bridging the current energy needs with cleaner alternatives, providing energy security and potentially reducing emissions relative to traditional fossil fuels.
The Indian government is actively fostering LNG growth through enhanced regasification capacity and expanded pipeline infrastructure.
Speaking on the inaugural day of India Energy Week 2025, Prime Minister Shri Narendra Modi discussed India’s energy ambitions.
“India is driving not only its growth but also the growth of the world, with the energy sector playing a significant role,” he said.
The environmental upside of embracing LNG
While still a fossil fuel, LNG's environmental footprint is considerably lower than that of coal or oil.
It produces about 50% less carbon dioxide than coal and emits significantly fewer pollutants like sulphur dioxide and particulates.
This makes it an appealing transition fuel for power generation and industrial uses, mitigating air pollution — a critical issue in India, home to some of the most polluted cities globally.
The move to LNG provides an immediate environmental benefit while allowing time for renewable energy capacities like solar and wind, alongside burgeoning sectors such as hydrogen, to expand and stabilise.
Notably, this strategic shift in India's energy economy is complemented by ambitious governmental targets for renewable energy and substantial investments in related infrastructure.
“India is scaling renewables, targeting 5 million tonnes of hydrogen by 2030, US$96bn in hydrogen investments and a gas share increase of 6% to 15% alongside the US$30bn in mining and petrochemical expansion,” says Hardeep Singh Puri, Minister of Petroleum and Natural Gas.
By increasing its share of natural gas, India can curb its air pollution crisis, which is among the worst in the world.
The shift towards LNG can also contribute to lower greenhouse gas emissions in the short-to-medium term while the country scales up its renewable energy capacity.
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