The Abu Dhabi National Oil Company (ADNOC) has signed a ten-year liquefied natural gas (LNG) supply agreement with India's Gujarat Energy Limited. The deal, announced on Friday, will deliver up to 4 million tonnes of LNG starting in 2028. This agreement is ADNOC's fifth LNG supply deal in India and the first to source gas from its international investment arm, XRG.
Key Details
Under the contract, Gujarat Energy will receive an average of up to 400,000 tonnes of LNG each year. The agreement is part of ADNOC's plan to grow its international natural gas business. It connects production from outside the Gulf to customers in India through ADNOC's global LNG marketing and trading platform. This platform was launched in July 2026 and aims to market 47 million tonnes per year (mtpa) of LNG by 2035.
Background
ADNOC has been active in securing LNG supply agreements recently. This includes a deal with TotalEnergies for up to 1.6 million tonnes of LNG over five years. The company is also developing the Ruwais LNG project, which will have a production capacity of 9.6 mtpa. Despite challenges in LNG flows through the Strait of Hormuz, ADNOC remains optimistic about long-term demand for LNG globally. Avantika Singh Aulakh, Managing Director of Gujarat Energy, noted that natural gas is key for India’s transition to cleaner energy.
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The new supply agreement could strengthen ADNOC's position in the LNG market. It may also affect global LNG prices and supply chains. Investors will watch for further developments in ADNOC's LNG strategy and upcoming agreements as the company aims to expand its market share in Asia and beyond.
Based on reporting by: oilprice.com