The Abu Dhabi National Oil Company (ADNOC) has secured a significant long-term liquefied natural gas (LNG) supply agreement with Gujarat Energy Ltd, committing to deliver up to 4 million tonnes of LNG over a decade starting in 2028. This deal not only reinforces ADNOC’s strategic presence in India, one of the fastest-growing energy markets, but also marks a pivotal moment for its investment arm, XRG, as it expands its international gas portfolio.
ADNOC Strengthens Its LNG Portfolio
This agreement is ADNOC’s fifth LNG supply contract in India and aligns with its broader strategy to establish a global LNG marketing and trading business. The deal allows XRG to monetize its international gas investments while enhancing ADNOC’s access to LNG supplies beyond its domestic production. Previously, ADNOC had secured long-term contracts with major Indian energy firms such as Indian Oil Corporation (IOC), GAIL, and Hindustan Petroleum Corporation Ltd (HPCL).
Key facts
- ADNOC will supply up to 4 million tonnes of LNG to Gujarat Energy Ltd starting in 2028.
- This is ADNOC’s fifth LNG supply agreement in India.
- ADNOC has previously secured contracts with IOC for a combined 2.2 million tonnes per annum.
- GAIL has a contract for up to 0.52 million tonnes per annum for 10 years starting in 2026.
- HPCL has a 10-year supply agreement for 0.5 million tonnes per annum.
- ADNOC’s global LNG marketing and trading platform was launched in July 2026.
Implications for UAE Residents and Businesses
This agreement is significant for UAE residents and businesses as it highlights ADNOC’s commitment to diversifying its energy portfolio and enhancing its role in the global LNG market. The expansion of ADNOC’s LNG supply capabilities can lead to increased energy security and stability for the UAE, which is crucial for both residential and commercial energy needs. As India seeks to boost its natural gas consumption across various sectors, including industry and power generation, this partnership may also open up new opportunities for UAE businesses involved in the energy sector.
What happens next
- The LNG supply agreement with Gujarat Energy Ltd will commence in 2028.
- ADNOC will continue to explore additional contracts and partnerships to expand its LNG market presence.
- The global LNG market is expected to see significant capacity expansion, impacting supply dynamics.
This landmark agreement positions ADNOC as a key player in the international LNG market, enhancing energy collaboration between the UAE and India.