Gas
Adnoc finalises decade-long liquefied natural gas contract with India's Gujarat Energy
Abu Dhabi National Oil Company has agreed to supply up to four million tonnes of liquefied natural gas to India's Gujarat Energy over a ten-year period starting in 2028.
Key points
- Gujarat Energy will source liquefied natural gas from the international portfolio of XRG.
- The arrangement represents the fifth such supply pact between Adnoc and Indian entities.
- Deliveries are scheduled to begin in 2028 under the ten-year commitment.
What happened
Abu Dhabi National Oil Company (Adnoc) has entered into a long-term supply arrangement with Gujarat Energy, a state-owned enterprise in India, according to reports from The National and ET EnergyWorld. Under the terms, the Indian firm will take delivery of up to four million tonnes of liquefied natural gas across a ten-year period. Shipments are slated to commence in 2028.
The commodity will be sourced from the international gas holdings of XRG, which functions as Adnoc's investment vehicle for lower-carbon energy and chemicals. The transaction marks the inaugural international portfolio sale for XRG's marketing operations and constitutes Adnoc's fifth supply contract within the Indian market. Rashid Al Mazrouei, who oversees liquefied natural gas marketing and origination for Adnoc, stated that the pact deepens existing energy ties with buyers in the South Asian nation.
Avantika Singh Aulakh, managing director at Gujarat Energy, noted that gas serves as a transition fuel to enhance industrial efficiency and support cleaner energy adoption. Gujarat Energy manages regasification assets and operates across multiple districts in several Indian states.
Global expansion
Adnoc launched its dedicated marketing and trading platform in July with the objective of scaling marketable liquefied natural gas volumes past 47 million tonnes annually beyond 2030. The enterprise has previously secured supply accords with entities including Japan's Inpex and Thailand's Gulf Group.
Simultaneously, XRG continues to expand its footprint internationally. The investment firm recently agreed to acquire an Australian natural gas stake from Shell for $1.5 billion and secured participation in a Venezuelan offshore gas venture alongside BP and Qatar’s UCC.
Why it matters
The expansion of cross-border gas supply agreements highlights the evolving dynamics of global energy trade, particularly as major producers secure long-term demand outlets in developing economies. For African energy producers and investors, such large-scale multi-year commitments demonstrate the enduring role of natural gas in international portfolios despite global energy transition pressures. While Henry Hub gas spot prices stood at $2.63 per MMBtu in November 2026, long-term bilateral contracts continue to provide supply security and demand predictability for state-backed producers navigating shifting global markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
- ReutersADNOC signs 10-year LNG supply agreement with India’s Gujarat Energy
- The National (UAE)Adnoc signs new agreement to supply LNG to India’s Gujarat Energy
- ET EnergyWorld (India)Gujarat Energy signs 10 year LNG supply deal with ADNOC for up to 4 Mt
- RigzoneADNOC to Supply Gujarat Energy 4 MMtpa of LNG for 10 Years
- Yahoo FinanceADNOC agrees 10-year LNG supply deal with Gujarat Energy
- LNG IndustryADNOC signs LNG supply agreement with Gujarat Energy
- Pipeline and Gas JournalADNOC signs 10-yr LNG supply deal with India’s Gujarat Energy
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
2.9% of electricity in India came from gas in 2024Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
