State-owned Indian Oil has signed multibillion-dollar agreements with Total Energies of France and Adnoc LNG of Abu Dhabi to import gas in ships beginning in 2026, highlighting the country's efforts to diversify its supply basket as it expands its gas network. The agreements were signed during Prime Minister Narendra Modi's recent trip to both countries.
Because the government wants to increase gas's share of the energy basket from 15% to 65% by 2030, long-term agreements have become critical to avoiding price or supply shocks in the post-Ukraine scenario. From its global portfolio, Adnoc will supply up to 1. 2 mtpa (million tonnes per year) of LNG for 14 years and Total 0. 8 mtpa for ten years. A 'comprehensive economic cooperation agreement' with Abu Dhabi will make Adnoc shipments more competitive because IOC will not be required to pay 2.5% duty.