Abu Dhabi National Oil Company (ADNOC) has officially cemented a significant five-year liquefied natural gas (LNG) supply agreement with India’s Bharat Petroleum (BPCL), commencing in April 2025.

The deal, expected to have been finalised during the recently concluded India Energy Week conference, underscores India’s commitment to expanding its natural gas infrastructure and ADNOC’s growing role as a key energy provider to the region.

Under the terms of the agreement, BPCL is set to receive 40 cargoes of LNG, totalling 2.5 million tonnes (mt), according to sources familiar with the matter.

The initial supply will be somewhat lower, gradually increasing over the first two years of the agreement.

While ADNOC has a policy of not commenting on commercial negotiations, this deal highlights the strengthening energy partnership between the UAE and India.

BPCL and Indian Oil Corporation (IOC) have yet to release official statements regarding the deal.

India, currently the world’s fourth-largest importer of LNG, has set ambitious goals to increase the share of gas in its energy mix from the current 6.2 per cent to 15 per cent by 2030.

To meet this target, Indian companies are actively exploring LNG purchase opportunities from various global suppliers, including the United States, according to Oil Secretary Pankaj Jain.

This agreement follows ADNOC Gas’s recent announcement of a record net income of US$5 billion (Dh18.36 billion) for the 2024 fiscal year, a 13 per cent increase year-on-year.

The company also reported a 14 per cent growth in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to US$8.65 billion, maintaining a stable 35 per cent margin.

ADNOC Gas also achieved its highest quarterly income since its initial public offering, with total sales volumes rising by 2 per cent to 3.62 billion British thermal units.

In addition to the BPCL deal, ADNOC Gas finalised a US$450 million LNG supply agreement with Japan’s JERA Global Markets in January 2025.

The LNG for these deals will be sourced from ADNOC Gas’s Das Island facility, which boasts an annual production capacity of 6mt.