IOC, BPCL to sign multibillion-dollar LNG purchase deals With Adnoc

Two of India’s biggest state-run oil companies will this week sign agreements to buy liquefied natural gas from Abu Dhabi National Oil Co., as the world’s most populous nation looks to secure long-term supplies to meet growing energy demand.

Indian Oil Corp., the nation’s biggest refiner, will buy up to 1.2 million tons a year of LNG from Adnoc, valued at over $7 billion for the 14-year period of the deal starting 2026, according to a government statement. Bharat Petroleum Corp. is looking to receive 2.5 million tons of the fuel from the UAE company over five years starting April, with an option to extend it by another five years.

The deals highlight India’s plan to more than double the share of gas in its energy mix by the end of this decade, even as infrastructure bottlenecks are constraining the expansion. For Adnoc, it’s another step to lock in long-term customers for its LNG export capacity following binding agreements with companies from Germany to Malaysia.

Adnoc, which is competing with Qatar to secure buyers for LNG, has been offering lower prices and more flexible terms than its Gulf neighbor, according to traders negotiating with the countries. Buyers, including from India, are also increasingly looking at supply from the US as nations look to smooth relations with President Donald Trump.

UAE is boosting its LNG export capacity to 15.4 million tons a year from 5.8 million, with the first cargo from the new project at Ruwais set for 2028. Qatar is undertaking a much larger expansion, raising capacity from 77 million tons a year to 142 million by 2030,

Separately, Bharat Petroleum will this week also sign an optional term contract with Brazil’s Petrobras to import 6 million barrels of crude, according to the government statement.