New Delhi: Indian Oil Corp signed a deal amounting to $7-9 billion with Abu Dhabi’s ADNOC on Tuesday. The deal aims at provision of supplying 1.2 million metric tonnes of Liquefied Natural Gas (LNG) for the next 14 years to IOC.

The IOC informed that the deal was signed when Prime Minister visited United Arab Emirates (UAE).

Adding further IOC said that India’s treaty with the UAE will be useful in importing LNG without having to pay a 2.5 per cent import tax.

Another deal during PM Modi’s visit

During PM Narendra Modi’s visit, IOC inked another deal with France’s Total Energies to buy 0.8 mtpa of LNG for a period of 10 years.

The two deals will start in 2026, however, the Central Government has not yet disclosed the amount of the deals.

“The landmark deal marks another significant milestone for ADNOC Gas as it expands its global reach, reinforcing its position as a global LNG export partner of choice, and reaffirming IOCL as its key strategic partner in the LNG market,” ADNOC Gas said.

LNG is a natural gas that is liquefied by cooling it at very low temperatures to ship it globally using specially designed vessels.

Billions of dollars are being spent by Indian companies in order to boost their gas infrastructure and are on the look for long-term LNG import deals. the mission is to increase the share of gas in its energy mix to 15 per cent by 2030 from 6.2 per cent at present.