Indian Oil Corporation (IOC), India's leading oil refining and marketing company, is poised to significantly boost its liquefied natural gas (LNG) portfolio. The state-owned enterprise has struck a landmark deal with Abu Dhabi National Oil Company (ADNOC), set to commence in 2029.

Key Highlights of the Deal

• IOC will become ADNOC's largest LNG buyer
• The agreement involves a total offtake of 2.2 million tonnes per annum (MTPA) of LNG
• The partnership is scheduled to begin in 2029

Strategic Implications

This long-term agreement marks a significant step for IOC in securing a stable supply of LNG, a cleaner-burning fuel that is becoming increasingly important in India's energy mix. The deal underscores IOC's commitment to diversifying its energy sources and strengthening its position in the global LNG market.

For ADNOC, the United Arab Emirates-based energy giant, this partnership represents a major expansion of its LNG customer base. By securing IOC as its biggest LNG buyer, ADNOC is solidifying its position as a key player in the international LNG trade.

Looking Ahead

The timing of the deal, set to commence in 2029, suggests a long-term strategic outlook from both parties. It allows time for necessary infrastructure developments and aligns with projected increases in India's energy demand.

As India continues to prioritize cleaner energy sources to meet its growing needs, this partnership between IOC and ADNOC is likely to play a crucial role in shaping the country's energy landscape in the coming decades.

While the financial details of the agreement have not been disclosed, the scale of the offtake - 2.2 MTPA - indicates a significant long-term commitment from both parties.

This development is expected to have far-reaching implications for India's energy security and could potentially influence the dynamics of the global LNG market.

Indian Oil Corporation and Air India have taken a significant step towards greener aviation by signing a Memorandum of Understanding (MoU) for the supply of Sustainable Aviation Fuel (SAF). This collaboration marks a major milestone in India's journey towards sustainable air travel and reinforces both companies' commitment to reducing carbon emissions in the aviation sector.

Key Highlights of the Partnership

• The MoU outlines a shared commitment to promote the adoption of low-carbon fuels in aviation.
• The partnership aims to support global decarbonization goals and contribute to the transition toward more sustainable air transport operations.
• IndianOil has become the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery.

IndianOil's Trailblazing Role

IndianOil's Chairman, A.S. Sahney, emphasized the strategic importance of this partnership, stating, "The signing of this MoU with Air India represents a strategic step in India's transition to sustainable aviation. With our ISCC-CORSIA-certified SAF from Panipat, IndianOil is ready to provide a sustainable fuel solution that will help decarbonize air travel."

The ISCC CORSIA certification, granted under ICAO's Carbon Offsetting and Reduction Scheme for International Aviation, establishes IndianOil's capability to produce SAF that meets stringent international sustainability and lifecycle carbon emission standards.

Air India's Commitment to Sustainability

Campbell Wilson, CEO & Managing Director of Air India, expressed the airline's dedication to sustainability: "Through this MoU with IndianOil, Air India is committed to support the Government of India's initiatives to promote sustainable development in the aviation sector and to further its own sustainability goals to achieve the IATA Net Zero by 2050 target."

Air India is actively pursuing initiatives in operational efficiency and low-carbon emissions as part of its strategy to achieve the IATA Net Zero by 2050 target.

Collaboration Details

The MoU was signed by Shailesh Dhar, Executive Director (Aviation) of IndianOil, and P. Balaji, Group Head - Governance, Regulatory, Compliance (GRC) and Corporate Affairs of Air India. The agreement focuses on:

1. Collaborating on the supply of SAF to meet CORSIA targets for international flights.
2. Ensuring a reliable, transparent, and sustainable fuel supply to support both companies' environmental goals.
3. Potentially exceeding CORSIA targets, demonstrating a strong commitment to sustainability.

This partnership between IndianOil and Air India not only reinforces India's position as a front-runner in sustainable aviation and energy transition but also sets a benchmark for the industry. As both companies work together to integrate certified green fuels into commercial operations, they are paving the way for a cleaner and more sustainable future in Indian aviation.