ADNOC sells 4 million tons of LNG to India's Gujarat Energy

Summary

• ADNOC will supply Gujarat Energy up to 4 million tons of LNG over ten years from 2028.
• It is the first LNG sale from the international portfolio of XRG, ADNOC's investment arm.
• The deal is ADNOC's fifth LNG supply agreement in India, its fastest-growing Asian demand market.

The latest

Up to 4 million tons of liquefied natural gas will flow from ADNOC to India's Gujarat Energy Limited over ten years starting in 2028, under a long-term sale and purchase agreement announced in Abu Dhabi. The contract is the first LNG sale drawn from the international portfolio of XRG, ADNOC's international investment arm, and ADNOC's fifth supply deal in India.

Details

• The volumes: Gujarat Energy will receive up to 4 million tons of LNG across the ten-year term, with deliveries beginning in 2028. ADNOC did not disclose a financial value for the agreement, a price formula, or the origin of the cargoes committed under the contract.
• The XRG first: ADNOC described the transaction as the first LNG sale from XRG's international business portfolio, framing it as a step in XRG's development into an integrated global gas and LNG player that links supply produced outside the Gulf to Indian demand.
• ADNOC's position: Rashid Al Mazrouei, ADNOC's head of LNG marketing and supply development, said the deal deepens the company's partnership with Indian energy players and underlines a commitment to reliable long-term supply, adding that ADNOC's integrated platform connects its growing international portfolio to customers across key global markets.
• The trading platform: The agreement runs through ADNOC's global LNG marketing and trading platform, launched at Abu Dhabi Global Market in July. The platform targets the marketing of 47 million tons of LNG per year after 2030, a benchmark ADNOC uses to measure its expansion in the sector.
• Asian footprint: The platform has now signed supply agreements with INPEX in Japan, Gulf Group in Thailand and Gujarat Energy in India, extending ADNOC's presence across three of Asia's most significant LNG demand centers. The company did not announce a timetable for further agreements in the region.
• The Indian buyer: Gujarat Energy Limited operates across multiple stages of the energy value chain, supported by LNG regasification infrastructure and a city gas distribution network covering 44 districts in six states, according to the company's own account of its position in the Indian market.
• Buyer's framing: Managing Director Avantika Singh Aulakh said the two companies are seeking to draw the maximum benefit from the potential of their cooperation, citing Gujarat Energy's leading position across the energy chain and what she described as a rapidly growing commercial presence in India.
• Why India: The deal marks ADNOC's fifth LNG supply agreement in the Indian market, making India the single country where the Abu Dhabi producer has concentrated the largest number of its long-term LNG contracts disclosed to date.

Background

XRG is ADNOC's international investment arm, built to hold and grow assets outside the United Arab Emirates. Its gas strategy rests on linking production sourced beyond the Gulf to demand centers in Asia through ADNOC's trading platform, rather than relying solely on Emirati output.

Between the lines

The structure matters as much as the volume. By routing non-Gulf supply to an Indian buyer through a platform based in Abu Dhabi, ADNOC is positioning itself as a trader of global molecules rather than only a seller of its own production. The 47 million ton annual target after 2030 exceeds what domestic output alone would support, making portfolio deals of this type the mechanism for reaching it.

What's next

First deliveries are due in 2028. Watch for additional supply agreements signed through the Abu Dhabi platform as ADNOC builds toward its 47 million tons per year target, and for any disclosure of the cargo sources behind the Indian contract.

Source: Emirates News Agency (WAM)