Adnoc Gas has signed a 10-year LNG supply agreement with India’s Hindustan Petroleum Corporation, according to a press release. Adnoc Gas will deliver 0.5 mn metric tons per annum from its Das Island liquefaction facility. No financial details were disclosed.

Not its first agreement with an Indian firm: Adnoc Gas also signed a14-year liquefied natural gas (LNG) supply agreement for 1.2 mn tons per year of LNG from the Das facility with Indian Oil Corporation, valued between USD 7-9 bn, earlier this year. Adnoc Gas also inked a 10-year sales and purchase agreement with Indian state-owned natural gas company Gail last year for 0.52 mn metric tons of LNG a year. Deliveries for both are set to start in 2026.

Securing the bag: India’s biggest refiner, Indian Oil, also bought at least 2 mn barrels from Abu Dhabi and 5 mn of US crude earlier this week, while India’s Reliance Industries purchased 1 mn barrels of Abu Dhabi’s Murban crude last month. India — the world’s fourth-largest LNG buyer — plans to more than double its LNG imports to 64 bn cubic meters annually by 2030.

Trading volumes of Murban futures have increased in recent weeks amid growing market interest in alternative crude sources, particularly against the backdrop of growing disdain for Russia from the EU and the US. US President Donald Trump has been threatening to impose secondary sanctions targeting Moscow’s oil customers if Russia does not reach a ceasefire agreement in Ukraine soon. The European Union has also recently imposed fresh sanctions on Russian crude supplies. Indian refiners, which play a pivotal role in processing Russian oil and re-exporting fuels to Europe, are now shifting toward alternative crude sources.

Still, official sources are quoted as saying that India does not plan to reduce its purchases of Russian oil, according to the New York Times. No directive has been issued to curb Russian crude purchases, which make up over a third of the country's imports. While India faces a potential 25% tariff and unspecified penalties, logistical constraints and long-term contracts limit its options.

Tags: