Indian Oil and UAE's ADNOC Signs Strategic LPG Supply Agreement

Indian Oil Corporation signed a strategic agreement with Abu Dhabi National Oil Company (ADNOC) for Liquefied Petroleum Gas (LPG) supplies during Prime Minister Narendra Modi’s UAE visit on 15 May 2026. 

IOC Strengthens Long-Term LPG Supply Framework 

The agreement between IOC and ADNOC is expected to improve the reliability of LPG supplies for India’s domestic market while reinforcing long-term energy sourcing arrangements. The collaboration gains significance as India continues to depend on imports for a substantial share of its fuel requirements. 

Through this partnership, IOC is expected to secure better supply visibility and strengthen its energy procurement ecosystem amid fluctuations in global fuel markets.  

Stable LPG sourcing remains important for India due to rising household and industrial demand for cleaner cooking and energy fuels. 

The agreement also highlights ADNOC’s growing role in India’s energy ecosystem as the UAE continues to emerge as a strategic supplier of hydrocarbons and related energy products to the country. 

India-UAE Energy Ties Continue to Deepen 

The LPG partnership forms part of broader strategic discussions between India and the UAE covering petroleum reserves, LNG infrastructure, trade expansion, and investment cooperation.  

During the visit, Indian Strategic Petroleum Reserves Limited (ISPRL) also entered into a separate strategic collaboration with ADNOC focused on petroleum reserve infrastructure and future energy storage opportunities. 

India and the UAE have significantly expanded bilateral economic engagement in recent years, with merchandise trade crossing the $100 billion mark in FY 2025-26. Energy security continues to remain one of the most important pillars of the bilateral relationship. 

Read More: Government Exploring PLI Scheme for Seafood Sector MSMEs: Commerce Ministry! 

IOC Share Price Performance 

As of 15 May 2026, at 3:30 PM, IOC share price closed at ₹135.65 per share, reflecting a decline of 3.29% from the previous closing price. 

Conclusion 

The latest agreement with ADNOC strengthens IOC’s long-term LPG sourcing strategy while further deepening India-UAE energy cooperation. 

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