ADNOC Eyes Additional Long-Term LPG Supply Agreements with India, Plans Deeper Energy Cooperation

Abu Dhabi National Oil Company (ADNOC) is considering further long-term liquefied petroleum gas (LPG) supply arrangements with India as it looks to strengthen commercial ties across the energy sector. Nasser Omair Al Muhairi, Acting CEO of ADNOC’s downstream industry, marketing and trading business, highlighted India’s strategic importance and identified opportunities to expand collaboration in crude oil, liquefied natural gas (LNG), naphtha, shipping, trading and strategic petroleum storage.

Al Muhairi said ADNOC’s integrated supply chain, trading operations and shipping capabilities could help Indian customers secure dependable long-term LPG supplies, improve procurement flexibility and strengthen the country’s energy security. He described India as one of the company’s most significant markets and emphasised its potential for broader cooperation.

Strengthening the Existing LPG Partnership

In May, Indian Oil Corporation Limited (Indian Oil) signed a strategic collaboration agreement with ADNOC during Prime Minister Narendra Modi’s visit to the United Arab Emirates. The arrangement aims to create additional opportunities for LPG supply and trading, including through ADNOC’s international trading arm. It could also lead to a long-term sale and purchase agreement, building on the supply contract established in 2023.

According to Al Muhairi, ADNOC’s dependable operations, supply chain resilience and geographic proximity to major demand centres make it well positioned to support India’s expanding energy requirements.

India Remains a Major Market for ADNOC

ADNOC supplied India with more than 500,000 barrels of crude oil per day in 2025, representing close to 10% of the country’s crude oil imports. The company is also a major supplier of LNG and naphtha to the Indian market.

Building on these established trade relationships, ADNOC sees scope to expand partnerships across multiple energy commodities and related services. Its strategy extends beyond increasing supply volumes to providing greater security, operational flexibility and investment opportunities throughout the energy value chain.

Increasing Production and Diversifying Supply

ADNOC is working towards raising its oil production capacity to five million barrels per day by 2027. Alongside this expansion, the company is increasing domestic natural gas production and widening its access to international LNG supplies.

Al Muhairi noted that recent market disruptions have highlighted the importance of an integrated energy supply network. ADNOC’s logistics capabilities and export infrastructure have helped maintain supply reliability and flexibility during periods of market uncertainty.

India and UAE Explore Expanded Strategic Storage

ADNOC is also in discussions with Indian Strategic Petroleum Reserves Limited (ISPRL) regarding potential investments in additional storage infrastructure for crude oil, LNG and LPG, including facilities intended for strategic reserves. Current priorities include advancing commercial and regulatory assessments to establish the proposed storage capacities, investment requirements and implementation schedules.

Under the potential expansion, ADNOC’s crude oil storage capacity in India could increase to as much as 30 million barrels. This would build on the existing 5.86 million barrels of storage at Mangaluru, with possible additional facilities in Visakhapatnam and Chandikhol.

The two parties are also examining the possibility of storing crude oil at Fujairah in the UAE as part of India’s strategic petroleum reserve network.

These initiatives reflect the growing energy partnership between India and the UAE, with expanded supply agreements, infrastructure investments and strategic storage arrangements expected to play an important role in improving supply resilience and meeting India’s long-term energy needs. The detailed article is published by https://www.thehindu.com/ can be accessed from https://www.thehindu.com/business/Economy/adnoc-open-to-long-term-lpg-deals-with-india-eyes-bigger-strategic-reserves/article71575015.ece/amp/