Indian Oil Corporation Limited (IOC), a prominent government-owned enterprise, has recently made significant strides in the liquefied natural gas (LNG) sector with lucrative agreements signed alongside France’s Total Energies and Abu Dhabi’s Adnoc. These landmark deals are poised to have a profound impact on India’s energy landscape. The Ministry of External Affairs released a list of agreements, spotlighting the Head of Agreement (HoA) inked between Indian Oil Corporation Limited and Total Energies Gas and Power Ltd (TotalEnergies) for a long-term LNG Sale and Purchase Agreement (SPA).
- Multibillion-Dollar Agreements and Competitive LNG Supply:
In a momentous development, Adnoc is set to supply up to 1.2 million tonnes per year (mtpa) of LNG over a 14-year period, while Total Energies will contribute 0.8 mtpa from its diverse global portfolio for a decade, both starting in 2026. A comprehensive economic cooperation agreement with Abu Dhabi further cements the arrangement by exempting Indian Oil Corporation (IOC) from a 2.5% duty, making the LNG shipments from Adnoc highly cost-effective.
- Historic Milestones in the LNG Industry:
Total Energies achieves a historic milestone by entering into its inaugural long-term agreement with an Indian company, signifying a significant breakthrough in the LNG industry. Additionally, the collaboration marks the first-ever long-term LNG import deal between an Indian company and Adnoc. As the world’s third-largest global LNG supplier, Total Energies will provide IOC with LNG from its extensive global portfolio. Meanwhile, ADNOC LNG, the national oil and gas company of the Abu Dhabi government, holds the distinction of being the longest-standing supplier of natural gas from the Middle East.
- About Indian Oil Corporation Limited:
Indian Oil Corporation Limited, an Indian multinational oil and gas company, operates under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. With its headquarters in New Delhi, Indian Oil is India’s largest government-owned oil producer and ranked 142nd on the Fortune Global 500 list of the world’s largest corporations as of 2022. Driven by the government’s goal of increasing the share of natural gas in the energy mix to 15 percent by 2030, Indian Oil Corporation (IOC) is proactively forging new agreements to ensure a stable and sustainable energy future.
The recent LNG agreements between Indian Oil Corporation Limited and Total Energies, alongside Adnoc, represent a major stride in India’s pursuit of a diverse and secure energy portfolio. With the long-term LNG supply arrangements and the exemption of duty, these partnerships are set to enhance India’s energy security while fostering deeper collaboration and growth in the LNG industry. As IOC continues to forge strategic alliances, the nation’s vision of elevating the share of natural gas in its energy mix will move closer to realization.
- 3 August Current Affairs 2023 in English
- MoU Between Subroto Mukerjee Sports and Education Society and All India Football Federation (AIFF) to Promote Football at Grassroot Level
- Dr. Mansukh Mandaviya Delivers Keynote Address at the 13th Indian Organ Donation Day ceremony
- Education Ministry Forms Expert Panel on Anti-Discrimination in Higher Education
- Concerns Arise Over Cheetah Deaths at Kuno National Park