IndianOil & ADNOC Gas: The Future of LNG in India
India is set to accelerate its transition towards cleaner energy sources as liquefied natural gas (LNG) is poised to play a greater role in its energy mix.
A deal between Abu Dhabi-based ADNOC Gas and Indian Oil Corporation (IndianOil) will see up to 1.2 million tons per annum (mtpa) of LNG delivered to India, reinforcing the country's ambitions to make natural gas 15% of its primary energy basket by 2030.
All in, the 14-year agreement is valued between US$7bn and US$9bn. A deal this size sends a statement that India is committed to diversifying its energy mix and reducing its reliance on oil.
The LNG will be sourced from ADNOC Gas' Das Island liquefaction facility, one of the world's longest-operating LNG plants, which has supplied more than 3,500 LNG cargoes worldwide since it began operations.
Inside ADNOC Gas and IndianOil's partnership
The agreement builds on an existing relationship between ADNOC Gas and IndianOil, India's largest integrated energy company.
By converting a previous Heads of Agreement into a long-term sales and purchase agreement (SPA), this deal boosts the bond between two of the fastest-growing energy markets in the world.
“This agreement strengthens our long-standing partnership with IndianOil and is a testament to the dynamic and robust energy ties between the UAE and India,” says Fatema Al Nuaimi, CEO of ADNOC Gas.
“As a reliable and responsible supplier of lower-carbon gas, ADNOC Gas looks forward to supporting India’s plans to make gas 15% of its primary energy basket by 2030.”
For ADNOC Gas, this deal is part of a broader expansion strategy, following a series of LNG agreements with key growth markets in Asia.
These agreements range from 0.4 mtpa to 1.2 mtpa and span up to 14 years, positioning the company as a major player in supplying lower-carbon LNG to high-demand regions.
Why LNG matters for India
India’s energy transition has been a slow but steady process. The country still relies heavily on coal and oil, both of which contribute significantly to air pollution and carbon emissions.
While renewables such as solar and wind are growing rapidly, they require consistent baseload power sources to ensure stability in the grid.
Natural gas, particularly in its liquefied form, is seen as a crucial bridging fuel that can provide energy security while reducing emissions compared to conventional fossil fuels.
The government has been taking steps to encourage LNG adoption, from expanding regasification terminals to increasing pipeline infrastructure across the country.
Speaking on the inaugural day of India Energy Week 2025, Prime Minister Shri Narendra Modi discussed India’s energy ambitions.
“India is driving not only its growth but also the growth of the world, with the energy sector playing a significant role,” he said.
With demand for natural gas projected to rise sharply, securing long-term LNG supply agreements with major producers like ADNOC Gas ensures price stability and energy security for India's rapidly growing economy.
IndianOil, which operates refineries, pipelines and retail networks across the country, plays a crucial role in India's gas market.
As the company strengthens its LNG portfolio, it is expected to support industrial and domestic gas use, displacing higher-emission fuels in key sectors.
The sustainability impact of LNG
While LNG is still a fossil fuel, its environmental impact is significantly lower than that of oil and coal.
The combustion of natural gas produces around 50% less carbon dioxide than coal and emits fewer pollutants such as sulphur dioxide and particulates, making it a cleaner option for power generation and industrial applications.
It’s not the only energy source that India is investing in, though.
“India is scaling renewables, targeting 5 million tonnes of hydrogen by 2030, US$96bn in hydrogen investments and a gas share increase of 6% to 15% alongside the US$30bn in mining and petrochemical expansion,” says Hardeep Singh Puri, Minister of Petroleum and Natural Gas.
By increasing its share of natural gas, India can curb its air pollution crisis, which is among the worst in the world.
The shift towards LNG can also contribute to lower greenhouse gas emissions in the short-to-medium term while the country scales up its renewable energy capacity.
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