Adnoc signs a 10-year LNG supply deal with India’s Gujarat Energy + Abu Dhabi explores trucking LNG to factories off the gas network

XRG’s first sale: Abu-Dhabi’s Adnoc has signed a 10-year sales and purchase agreement (SPA) with India’s Gujarat Energy to supply up to 4 mn tons of LNG starting in 2028, according to a press release. That’s an average of 400k tons annually, by our math. It is the first sale from the international gas portfolio of Adnoc’s investment arm XRG, and Adnoc’s fifth LNG supply agreement in India. The company didn’t disclose the contract value or which overseas production facility would supply the cargoes.

A platform behind it: The agreement was signed through Adnoc’s integrated LNG marketing and trading platform, launched in July to combine the marketing operations of Adnoc Gas and XRG with Adnoc Trading. Adnoc’s goal for the platform is 47 mn tons of marketable LNG annually beyond 2030, and it has already signed agreements with Japan’s Inpex and Thailand’s Gulf Group, the latter covering around 2 mn tons starting in 2027. Adnoc has also secured long-term Indian offtake agreements linked to its Das Island and Ruwais LNG facilities.

Buy first, sell next: The Gujarat agreement comes days after XRG agreed to acquire Shell’s 16.7% stake in Australia’s North West Shelf LNG project for USD 1.4 bn, adding to its investments in the Rio Grande LNG development in Texas and an LNG project in Argentina.

Off-grid, a different LNG route: Abu Dhabi’s Energy Department signed a cooperation framework with H2G Green and its Singaporean subsidiary GasHubUnited, Sergas Group’s Muzn Energy, and CloudEnergi on the sidelines of Adipec to assess supplying liquefied natural gas (LNG) to industrial and commercial facilities that aren’t connected to existing gas networks, state news agency Wam reports.

A virtual pipeline: The plan is to move the LNG by road or sea, an approach the industry calls a “virtual pipeline,” and use it to replace higher-emission fuels. The agreement could unlock up to AED 1 bn in investment. For now, it’s a framework to assess pilot projects, not a commitment to build anything.