Gujarat Energy has signed a long-term agreement with Abu Dhabi National Oil Company (ADNOC) to procure up to 4 million tonnes of liquefied natural gas (LNG) over ten years, with supplies scheduled to begin in 2028. The pact links the Indian company to LNG from the international gas portfolio of XRG, ADNOC’s international investment company.
The Sales and Purchase Agreement marks Gujarat Energy’s first purchase of LNG molecules from ADNOC’s international portfolio and the fifth LNG supply agreement signed by ADNOC in India, according to the announcement reported by Economic Times. The agreement establishes a long-term procurement arrangement, although the announcement did not disclose the commercial value, pricing formula, delivery schedule or receiving terminal for the contracted volumes.
Rashid Al Mazrouei, Chief Marketing and Origination Officer for LNG at ADNOC, said the agreement strengthened the company’s long-standing energy partnership with India. He described it as the first sale of molecules from XRG’s international portfolio and said ADNOC was seeking to connect its growing international portfolio with customers in key markets through its LNG marketing and trading platform.
The agreement is significant for the gas supply chain because LNG is transported in liquefied form and supplied to customers after regasification. The source announcement did not specify how Gujarat Energy would use the contracted gas, whether the volumes would be allocated to power generation, industrial customers, city gas distribution or other users, or how the procurement would be integrated with existing domestic supply arrangements.
Avantika Singh Aulakh, Managing Director of Gujarat Energy Ltd, said the partnership would support the company’s collaboration with ADNOC. She described natural gas as a lower-carbon energy option that can improve industrial efficiency, provide households with cooking fuel and support cleaner transportation. The statement did not provide a project-wise breakdown of expected users, capacity additions or emissions outcomes.
The agreement also comes as a long-term supply contract rather than an immediate change in gas availability. Procurement is expected to begin in 2028, leaving the operational details of delivery, storage, regasification and downstream distribution to be established through the parties’ implementation arrangements. Those details will determine how the contracted LNG enters India’s wider energy and urban utility systems.
Shares of Gujarat Energy Ltd were trading at Rs 218.05 per scrip on the BSE at around 11:20 am on Friday, down Rs 6.65, or 2.96 per cent, according to the report. The market movement was recorded on the day of the announcement and does not by itself establish how investors assessed the long-term agreement.
The next stated milestone is the start of LNG procurement in 2028. Gujarat Energy and ADNOC have not, in the supplied announcement, provided further details on the delivery infrastructure or the schedule for converting the agreement into actual cargo supplies.
