State-run Indian Oil Corporation Ltd (IOCL) and GAIL are in talks with the UAE’s Abu Dhabi National Oil Company (ADNOC) for a long-term liquefied natural gas (LNG) supply contract in order to secure India’s energy needs at affordable prices. The negotiations are well underway. In fact, given the UAE’s current limited natural gas export capacity, India is negotiating a long-term offtake mechanism from an upcoming LNG plant in Fujairah.
“Two of our companies, GAIL and IOCL, are in talks with ADNOC about long-term LNG contracts. Right now, as we speak, discussions have advanced significantly. It’s just a matter of getting the right numbers. “We are optimistic about completing it soon,” Sudhir said.
The UAE is our second largest energy import source. However, unlike in some other countries, it is not part of long-term agreements. It is, in fact, spot LNG from aggregators. We are attempting to make the supply more direct and long-term. It benefits both of us,” Sudhir explained. India is also collaborating with the UAE to secure long-term offtake from an upcoming LNG plant.