Gujarat Energy has officially entered into a long-term sales and purchase agreement with the Abu Dhabi National Oil Company (ADNOC) to secure the supply of liquefied natural gas (LNG). Under the terms of the deal, which was announced on Friday, Gujarat Energy will receive up to 4 million tonnes of LNG over a ten-year period, with deliveries scheduled to commence in 2028.
This arrangement is notable as it represents the first purchase of molecules from the international portfolio of XRG, the investment arm of ADNOC. The agreement marks the fifth supply partnership established by the Abu Dhabi-based firm within the Indian market, further solidifying the energy trade ties between the two nations. The deal was facilitated through ADNOC’s integrated LNG marketing and trading platform, which was inaugurated at the Abu Dhabi Global Market in July 2026.
The partnership is expected to play a significant role in India’s ongoing transition toward lower-carbon energy alternatives. Avantika Singh Aulakh, managing director of Gujarat Energy, stated that natural gas serves as a foundational element in improving industrial efficiency, providing safer cooking fuel for households, and fostering the expansion of eco-friendly transportation sectors. Gujarat Energy, which operates under the backing of the Gujarat state government, manages an extensive city gas distribution network that spans 44 districts across six Indian states.
Rashid Al Mazrouei, chief marketing and origination officer for LNG at ADNOC, highlighted the importance of the deal in the context of the company’s global expansion strategy. “It represents the first sale of molecules from XRG’s international portfolio, reinforcing our commitment to delivering reliable, long-term LNG supplies,” he said. Al Mazrouei noted that the platform is actively connecting its growing global portfolio with key markets, ensuring that India receives consistent and flexible energy supplies.
The agreement also fits into ADNOC's broader objective of reaching 47 million tonnes per annum of marketable LNG beyond 2030, which would position the company among the foremost energy suppliers worldwide. Since the launch of its dedicated trading platform, ADNOC has successfully concluded supply agreements with international entities including INPEX in Japan and the Gulf Group in Thailand, alongside the current deal with Gujarat Energy.
For India, the UAE remains a vital source for energy commodities. The importance of reliable supply chains has been underscored by recent regional geopolitical challenges, including the conflict in West Asia and the intermittent closure of the Strait of Hormuz earlier this year. Ports located within the UAE that fall outside the strait have become essential transit points for maintaining energy security for Indian markets.
Looking ahead, the collaboration between the two companies is designed to leverage Gujarat Energy’s existing regasification infrastructure and its established trading presence within the country. Both parties expressed confidence that this long-term framework will help stabilize the domestic supply of natural gas, supporting the state-backed company’s role in providing compressed natural gas for mobility and piped natural gas for residential use.
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