In a major boost to India's energy security, the country has secured significant volumes of crude oil and liquefied natural gas (LNG) to meet its growing demand. Three major deals will be signed by India's oil and gas companies with international majors ADNOC and Petrobras at the India Energy Week, seen as a significant step towards diversifying the country's energy sources, according to sources.
Bharat Petroleum Corp Ltd (BPCL) will sign a formal agreement today at the India Energy Week in New Delhi for an optional term contract with Brazil's Petróleo Brasileiro S.A. (Petrobras) for the import of 6 million barrels of Brazilian crude grades. The contract is initially for one year and can be extended by another one year.
In another significant development, Indian Oil Corp Ltd (IOCL) and Abu Dhabi National Oil Company (ADNOC) will sign a $7 billion sale and purchase agreement for the sourcing of long-term LNG. IOCL will source up to 1.2 million metric tonnes per annum (MMTPA) from 2026 onwards for 14 years.
BPCL and ADNOC will also sign a long-term LNG offtake agreement for 2.5 million metric tonnes spread over five years starting from April 2025. The agreement is expandable by another five years with mutual consent, people aware of the development said.
While the exact value of these contracts is not known yet, they are together likely to be worth over $10 billion.
These deals are a significant milestone in India's efforts to meet its growing energy demand. With the country's energy consumption expected to rise significantly in the coming years, these agreements will help ensure a stable supply of crude oil and LNG.
The long-term deals are a step towards enhancing energy security especially when supply constraints have frequently led to price volatility in the spot market.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
