By: OrePulse

Abu Dhabi National Oil Company (ADNOC) has signed a 10-year agreement to supply up to 4 million tonnes of liquefied natural gas annually to India's Gujarat Energy starting in 2028, marking the company's fifth LNG supply agreement with an Indian buyer this year and the first international sale from its XRG trading portfolio.

ADNOC said the long-term sale and purchase agreement was announced in a statement, with volumes to begin flowing from 2028. The company described the deal as the first sale of hydrocarbons from the international portfolio of XRG, the investment vehicle ADNOC has been building to expand its global gas and chemicals footprint beyond the UAE.

The agreement came just three days after ADNOC signed a separate five-year deal with France's TotalEnergies for up to 1.6 million tonnes of LNG a year, a transaction whose value was not disclosed. Together, the two deals extend ADNOC's reach into both established European trading relationships and fast-growing Asian demand.

Rashid Al Mazrouei, ADNOC's chief marketing and origination officer for LNG, and Avantika Singh Aulakh, managing director of Gujarat Energy, were both named in connection with the signing. The companies did not disclose the value of the agreement.

The deal is ADNOC's fifth long-term LNG supply agreement with an Indian counterparty this year, following a January agreement with Hindustan Petroleum Corporation Limited for 500,000 tonnes a year over 10 years, a contract separately reported to be worth about $3 billion. The repeated engagement with Indian buyers underscores India's position as one of the largest and fastest-growing markets for imported gas, as the country works to diversify its energy mix away from coal and reduce dependence on more volatile spot LNG purchases.

The Gujarat Energy agreement is also linked to ADNOC Global LNG Trading, a platform the company launched in July 2026 to build out its international trading and marketing operations. ADNOC has said the platform is targeting a trading volume of 47 million tonnes of LNG a year once fully built out after 2030, a scale that would place it among the largest LNG trading operations tied to a single national oil company.

The agreement adds a large, long-dated volume commitment to ADNOC's expanding Asian LNG book at a time when several Gulf and global suppliers are racing to lock in buyers ahead of a wave of new liquefaction capacity expected to reach the market by the end of the decade. Long-term offtake agreements, rather than reliance on the spot market, have increasingly become central to how both buyers and sellers manage price risk in LNG trade.

For Gujarat Energy, the agreement secures a stable long-term gas supply as India continues to expand gas-fired power generation and industrial gas use. India's government has set a target of raising the share of natural gas in the country's energy mix, and long-term import contracts such as this one are seen as a key mechanism for meeting that goal without excessive exposure to spot market volatility.

Neither company disclosed pricing terms, delivery ports, or whether the LNG would be sourced from a specific liquefaction facility. ADNOC's existing LNG supply comes primarily from its Das Island facility in Abu Dhabi, though the company has also been expanding its international LNG sourcing and trading capabilities through XRG.

The agreement is the latest in a string of Gulf LNG supply deals targeting Asian buyers this year, as producers including Qatar and the United Arab Emirates compete for long-term market share ahead of an anticipated expansion in global LNG supply over the next several years.

XRG, which ADNOC established to pursue international investments across gas, chemicals and lower-carbon energy, has been expanding its portfolio through acquisitions and long-term offtake agreements as part of ADNOC's broader strategy to diversify revenue beyond its core Abu Dhabi upstream operations.