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The Ministry of Petroleum & Natural Gas (MoPNG) said on Monday that state-run Indian Oil Corporation (IOCL) has signed a 15 year agreement with the Abu Dhabi National Oil Company (ADNOC) to supply 1 million tonnes liquefied natural gas (LNG) annually.
Besides, a memorandum of understanding (MoU) was signed between ADNOC and the India Strategic Petroleum Reserve (ISPRL) for leasing of storage space. A production concession agreement for Abu Dhabi Onshore Block 1 between Urja Bharat and ADNOC was also inked.
The agreements and MoUs were signed as part of the two-day official visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi beginning September 9. This is the Crown Prince’s first official visit to India in this capacity.
“The agreement for long-term LNG supply is for 1 million tonnes per annum (mtpa) and is the third such contract signed in just over a year. Both IoCL and GAIL previously signed long-term agreements for 1.2 mtpa and 0.5 mtpa, respectively, with ADNOC. These contracts have strengthened energy security in India by diversifying LNG sources,” MopNG said.
The MoU between ADNOC and ISPRL provides for exploring ADNOC’s participation in additional opportunities for crude storage in India and renewal of their storage and management agreement on mutually acceptable terms and conditions. This MoU builds on ADNOC’s existing involvement in crude storage at the Mangalore Cavern of ISPRL since 2018, it added.
The Ministry said that the Production Concession Agreement for Abu Dhabi Onshore Block 1 between Urja Bharat (a JV of IoCL and Bharat Petro resources) and ADNOC is the first one for any Indian company operating in the UAE. The concession entitles Urja Bharat to bring crude oil to India, thus contributing towards the country’s energy security.
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