UAE'S ADNOC Gas agrees to $7-$9 B 14-year LNG agreement with Indian Oil Corp

(Reuters) - Abu Dhabi's ADNOC Gas on Tuesday announced a 14-year $7-$9-B deal with Indian Oil Corp to supply 1.2 million metric tons of liquefied natural gas (LNG) per year, ADNOC said in a statement.

The deal was signed during Prime Minister Narendra Modi's Visit to the United Arab Emirates (UAE) last week, IOC said in a statement issued on Monday, adding that India's trade treaty with the UAE enables it to import LNG without paying a 2.5% import tax.

Indian companies are spending billions of dollars to boost their gas infrastructure and are scouting for long term LNG import deals as the country aims to raise the share of gas in its energy mix to 15% by 2030 from 6.2% currently.

State-backed oil giant Abu Dhabi National Oil Co (ADNOC) has sharpened its focus on the gas market as competition for LNG has ramped up since the Russian invasion of Ukraine in February 2022, with Europe in particular needing large amounts to help replace gas piped from Russia.

ADNOC raised about $2.5 B in March through a sale of roughly 5% of its gas business in an IPO.

The supply deal to India was first reported on Monday by IOC, but it omitted any information about the estimated dollar amount.

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