Indian Oil Corporation Limited (IOC), a government-owned enterprise and India’s largest oil and gas company, has achieved a major milestone by signing lucrative agreements with Total Energies of France and Adnoc of Abu Dhabi. These agreements are set to bolster the liquefied natural gas (LNG) trade and promote collaboration between India and these international energy giants.
According to the Ministry of External Affairs, IOC 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). Under this agreement, Total Energies will supply up to 0.8 million tonnes per year (mtpa) of LNG for a duration of 10 years, commencing in 2026. This historic deal marks the first-ever long-term LNG import agreement between an Indian company and Adnoc.
In a separate agreement, IOC has entered into a comprehensive economic cooperation agreement with Adnoc. This agreement enables IOC to receive LNG supplies from Adnoc at economical terms, as it will be exempt from paying a 2.5% duty. Adnoc, the national oil and gas company of the Abu Dhabi government, will provide a supply of up to 1.2 mtpa of LNG to IOC for a period of 14 years, commencing in 2026. This partnership strengthens India’s access to LNG resources from the Middle East.
The collaboration with Total Energies is a significant milestone as it marks Total Energies’ first-ever long-term agreement with an Indian company. Total Energies, a global leader in the LNG market, will leverage its diverse portfolio to supply LNG to IOC. The company’s extensive global reach positions it as a reliable and experienced LNG supplier.
These agreements highlight the strategic importance of LNG in India’s energy mix and the government’s commitment to increasing the share of natural gas in the country’s energy consumption to 15% by 2030. By forging these partnerships, IOC reinforces its position as a key player in the LNG sector and contributes to India’s energy security goals.
Indian Oil Corporation Limited, under the leadership of Chairman Shrikant Madhav Vaidya, continues to drive forward with new agreements in alignment with the government’s vision. These agreements not only strengthen India’s LNG trade but also pave the way for enhanced cooperation and investment in the energy sector. With its vast portfolio and strong global partnerships, IOC is poised to play a crucial role in India’s energy transition and sustainable development.