Tuesday, 02 January 2024 12:17 GMT

Gujarat Energy Signs Long-Term Pact With Adnoc To Procure 4 Million Tonnes Of LNG


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(MENAFN- Live Mint) New Delhi: Gujarat Energy on Friday announced the signing of a long-term sales and purchase agreement (SPA) with Abu Dhabi National Oil Company (Adnoc) for procuring up to 4 million tonne liquefied natural gas (LNG) from the international gas portfolio of XRG, Adnoc's international investment company.

The agreement marks the first purchase of molecules from XRG's international portfolio.

“Under the agreement, Gujarat Energy will receive up to 4.0 million tonnes of LNG over ten years, starting in 2028. The agreement is ADNOC's fifth LNG supply agreement in India,” said a statement from Gujarat Energy.

The company, backed by the government of Gujarat, is a major player in the city gas distribution business, supplying compressed natural gas (CNG ) for mobility and piped natural gas (PNG ) for cooking.

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“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, GEL.

This agreement strengthens Adnoc's long-standing energy partnership with India, said Rashid Al Mazrouei, chief marketing & origination officer (LNG).

"It represents the first sale of molecules from XRG's international portfolio, reinforcing our commitment to delivering reliable, long-term LNG supplies. Through our integrated LNG marketing and trading platform, we are connecting our growing international portfolio with customers in key markets, while providing India with reliable, flexible and long-term LNG supplies.”

Also Read | How Iran war, Hormuz closure forced Qatar to turn to US gas

The deal builds momentum for Adnoc's global LNG marketing and trading platform, which was launched in the Abu Dhabi Global Market in July 2026. The platform has now signed supply agreements with INPEX in Japan, Gulf Group in Thailand and Gujarat Energy in India, expanding ADNOC's reach across Asia's key LNG markets. It targets 47 mtpa of marketable LNG beyond 2030, positioning ADNOC among the world's leading LNG suppliers.

“Through this partnership, GEL and ADNOC are joining forces to fully realize the power of our collaboration. GEL leads the market at every stage of the energy journey, backed by robust regasification infrastructure, a widespread city gas network operating across 44 districts in six states, and a fast-growing trading presence in India," said Aulakh.

The UAE is a major supplier of LNG to India. Amid the war in West Asia and the closure of the Strait of Hormuz in March this year, ports in the UAE outside the strait have played a key role in supplying energy commodities from West Asia to India.

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Live Mint

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