ADNOC Signs 10-Year LNG Deal With Gujarat Energy, First Sale From XRG's Overseas Gas

Deliveries under the sales and purchase agreement, announced on Friday, November 6, are due to begin in 2028, ADNOC said. The company did not disclose a price or set out how the volume will be spread across the term. Gulf News described the 4 million tonnes as the total over the decade, while some Indian outlets reported it as an annual quantity.

The significance of the contract lies in where the gas comes from. ADNOC's earlier LNG deals with Indian buyers, including Indian Oil, GAIL and Hindustan Petroleum, were signed by its listed subsidiary ADNOC Gas. This one will be supplied from gas produced outside the Gulf in which XRG holds stakes, and marketed through the global LNG marketing and trading platform ADNOC launched in Abu Dhabi Global Market in July. It is the platform's third supply agreement, after deals with Japan's INPEX and Thailand's Gulf Group, and ADNOC's fifth LNG supply agreement in India.

The arrangement turns XRG, until now mainly a buyer of stakes in overseas gas and chemicals assets, into a seller of molecules to end customers. XRG was launched in 2024 as a lower-carbon energy and chemicals investor with an enterprise value of more than $80 billion, according to The National. This week it agreed to buy Shell's stake in an Australian natural gas project for $1.5 billion, and it has also entered Venezuela through an offshore gas project alongside BP and Qatar's UCC, the paper reported.

ADNOC is targeting a marketable LNG portfolio of 47 million tonnes a year beyond 2030, a volume that would put its trading business among the largest in the world.

"This agreement with Gujarat Energy strengthens ADNOC's long-standing energy partnership with customers in India," Rashid Al Mazrouei, ADNOC's chief marketing and origination officer for LNG, said in the company's statement. "Through our integrated LNG marketing and trading platform, we are connecting our growing international portfolio" with customers, he said, describing the deal as the first sale of molecules from XRG's international portfolio.

Avantika Singh Aulakh, managing director of Gujarat Energy, said: "Natural gas is central to driving India's shift toward cleaner energy, acting as a crucial lower-carbon option." She said gas improves industrial efficiency, gives households a safer cooking fuel and supports cleaner transport.

Gujarat Energy owns regasification infrastructure, runs a city gas network covering 44 districts across six Indian states and has a growing gas trading business, according to the announcement.

The contract adds to a run of UAE-India energy agreements this year. In January, ADNOC Gas agreed to supply Hindustan Petroleum Corporation with 500,000 tonnes of LNG a year for 10 years, a deal valued at $2.5 billion to $3 billion. In May, during Prime Minister Narendra Modi's visit to the UAE, ADNOC signed an agreement with Indian Strategic Petroleum Reserves to expand its crude storage in India to 30 million barrels.

ADNOC has not said which of XRG's overseas assets will supply the Gujarat cargoes, which are due to start arriving in 2028.