ADNOC agrees 5-year LNG supply deal with India's BPCL, sources say
Abu Dhabi National Oil Company (ADNOC) will supply 2.5 million tons of liquefied natural gas (LNG) to India's Bharat Petroleum Corp under a new five year deal, sources with knowledge of the matter said on Monday.
Indian's state refiner will receive 40 cargos of LNG under the 5-year contract with supplies beginning from April, the sources said.
In the initial two years, supplies would be less and will be gradually ramped up, one of the sources said.
ADNOC will sign the deal with BPCL during the four-day India Energy Week conference, the sources said.
During the conference ADNOC will also sign sale purchase agreement with Indian Oil Corp for a 15 year LNG deal agreed in September last year, the sources said. Supplies under ADNOC's deal with IOC will begin from April next year.
"We do not comment on commercial negotiations," ADNOC said in an email response. BPCL and IOC did not respond to emails from Reuters seeking comments.
The world's fourth largest importer of LNG, India aims to raise the share of gas in its energy mix to 15% by 2030 from 6.2% now.
Indian companies are also looking at buying LNG from the United States, oil secretary Pankaj Jain said earlier on Monday.
