Indian Oil Corp Ltd logo
Mon, July 17, 2023
By Nidhi Verma
NEW DELHI (Reuters) - Indian Oil Corp, the country's top refiner, has signed long-term liquefied natural gas (LNG) import deals with United Arab Emirates' s Abu Dhabi Gas Liquefaction Co Ltd (ADNOC LNG) and France's TotalEnergies.
The two deals were signed during Prime Minister Narendra Modi's Visit to France and UAE last week. Supplies under the two deals would commence from 2026, the Indian company said in two separate statements.
ADNOC LNG would supply up to 1.2 million metric tonnes per year (tpy) of LNG to IOC for 14 years, the Indian company said, adding India's trade treaty with UAE enable it to import LNG without paying a 2.5% import tax.
This is the first time that an Indian company has signed a long term LNG import deal with ADNOC.
TotalEnergies would supply 0.8 million tpy LNG to IOC under the 10 year deal, it said. TotalEnergies would supply LNG to IOC from its global portfolio.
India companies are spending billions of dollars to boost their gas infrastructure and are scouting for long term LNG imports deals as the nation wants to raise the share of gas in its energy mix to 15% by 2030 from 6.2% currently.
IOC's signings are also the latest in a slew of term deals signed by Asian LNG importers in recent months. In June, Bangladesh's state-owned Petrobangla signed a 10-year contract to receive LNG supplies from OQ Trading, formerly known as Oman Trading International, and a 15-year suppy deal with QatarEnergy, starting 2026.
Chinese importers Zhejiang Energy and ENN have also signed 20-year deals in recent weeks to receive North American supplies, after QatarEnergy inked 27-year agreements with China National Petroleum Corporation (CNPC) and Sinopec.
Meanwhile, Thailand's state-controlled PTT is in advanced talks with Qatar for a 15-year LNG deal for supplies of 1 or 2 million tonnes per annum, sources told Reuters.
(Reporting by Nidhi Verma; Editing by Simon Cameron-Moore)
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