New Delhi-based Indian Oil Corporation Ltd. and Mumbai-based Bharat Petroleum Corporation Ltd. have announced their decision to buy nearly 1.2 million tons of liquefied natural gas (LNG) annually from Abu Dhabi National Oil Company (ADNOC) to address the increasing demand for energy.
Both the oil companies hope to sign agreements with ADNOC, which is keen on securing long-term customers in this sector even as India plans to double the share of gas in its energy mix by 2035.
ADNOC’s serious competitor is Qatar, a major reason why the UAE company has been offering low prices and flexible terms compared to its Gulf neighbor. Buyers such as India also have the option of turning to the US, when countries around the world are wishing for cordial ties with President Donald Trump. That said, UAE is boosting its LNG export capacity to 15.4 million tons a year from 5.8 million, even as Qatar expands its capacity to 142 million per year by 2030 from the current 77 million tons. – editor@nrifocus.com
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