ADNOC (Abu Dhabi National Oil Company) has signed a 10-year liquefied natural gas (LNG) sales and purchase agreement with Gujarat Energy (Gujarat Energy Ltd.) of India. This contract marks the first gas sale from the international portfolio of XRG, ADNOC's international investment company. Under this agreement, Gujarat Energy will receive up to 4 million tons of LNG starting in 2028. This is ADNOC's fifth LNG supply agreement in India.
Contract Details and Impacts
Rashid Al-Mazrouei, Director General of LNG Marketing and Trading at ADNOC, stated: "This contract showcases the first sale of molecules from the international portfolio of XRG and demonstrates our commitment to providing sustainable and long-term LNG resources." He added that through its integrated LNG marketing and trading platform, ADNOC is connecting its growing international portfolio with customers in key global market areas.
This agreement was signed through ADNOC's global LNG marketing and trading platform, which was launched in the global market of Abu Dhabi in July. This platform has also signed supply contracts with INPEX in Japan and Gulf Group in Thailand, aiming to achieve 47 million tons per year (mtpa) of marketable LNG in the years following 2030. ADNOC has stated that this contract links XRG supply produced outside the Gulf to demand in India.
LNG Market Status in India
Avantika Singh Aulakh, CEO of Gujarat Energy, remarked: "GEL leads the market energy journey at every stage, supported by robust regasification infrastructure, a vast urban gas network operating in 44 areas across six states, and a growing commercial presence in India." This contract reflects the increasing demand for LNG in India and will help expand natural gas infrastructure in the country.
This agreement was signed just days after XRG had finalized a deal to purchase Shell's stake in the LNG North West Shelf project in Australia. Given the rapid growth in energy demand in India and ongoing efforts to diversify energy sources, this contract could strengthen international cooperation in the energy sector.
