ADNOC has signed a ten-year deal to supply LNG to Indian Gujarat Energy Ltd, in the first agreement to sell gas from the international gas portfolio of ADNOC’s international investment company, XRG.
Gujarat Energy will receive up to 4 million tons of LNG over ten years, starting in 2028, Abu Dhabi’s state energy giant said on Friday.
The agreement is ADNOC’s fifth LNG supply agreement in India, as well as a significant step in XRG’s evolution as a globally integrated gas and LNG business.
The deal will connect XRG-owned supply produced outside the Persian Gulf with demand in India through ADNOC’s global LNG marketing and trading platform.
“Natural gas is central to driving India’s shift toward cleaner energy, acting as a crucial lower-carbon option that boosts industrial efficiency, offers households a safer cooking fuel, and accelerates the growth of eco-friendly transportation,” said Avantika Singh Aulakh, Managing Director of Gujarat Energy.
ADNOC is accelerating its LNG business with a flurry of deals since it launched earlier this year a global LNG marketing and trading platform that combines the LNG marketing operations of ADNOC Gas and XRG with the trading capabilities of ADNOC Trading.
Earlier this week, ADNOC Gas signed a deal to supply up to 1.6 million tons of LNG to TotalEnergies over the next five years.
The first LNG deliveries will begin as early as this year, said TotalEnergies, which is one of the world’s biggest LNG traders.
Despite the severely constrained LNG flows through the Strait of Hormuz over the past eight months, the UAE is confident that the long-term prospects of global LNG demand remain on the upside and are an opportunity to grow its gas supply business.
The UAE is currently developing the Ruwais LNG project in Al Ruwais Industrial City in Abu Dhabi. Ruwais LNG will have 9.6 million tons per annum (mtpa) of production capacity, and most of it has been committed to international buyers across Asia and Europe through long-term agreements.
By Tsvetana Paraskova for Oilprice.com
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