ADNOC’s XRG Secures Major LNG Supply Deal to Deliver 4 Million Tonnes Per Year to India’s Gujarat Energy Starting in 2028

Abu Dhabi National Oil Co. (ADNOC) announced on Friday that its newly established low-carbon investment and growth arm, XRG, has entered into a significant international liquefied natural gas (LNG) sales agreement. Under the terms of the newly minted accord, XRG will supply 4 million metric tons per year (Mt/y) of LNG to India’s Gujarat Energy. The multi-year delivery schedule is slated to commence in 2028, marking a substantial expansion of ADNOC’s footprint in the rapidly growing South Asian energy market and reinforcing long-standing commercial ties between the United Arab Emirates and India.

The announcement underscores the continued evolution of ADNOC’s global export strategy, which has increasingly focused on securing long-term offtake agreements in key Asian economies experiencing surging demand for cleaner-burning fossil fuels. By channeling this major trade arrangement through XRG—its specialized investment vehicle designed to target international energy transitions and high-value industrial sectors—ADNOC is positioning its portfolio to capture rising global requirements for liquefied natural gas while simultaneously advancing broader corporate strategies centered on lower-carbon energy solutions.

For India, the agreement represents a vital strategic step in securing stable, long-term energy supplies to fuel its expanding industrial base, power generation sector, and urban centers. Gujarat Energy, operating within one of India’s most industrialized and economically dynamic states, requires reliable hydrocarbon imports to support its robust manufacturing and petrochemical industries. Securing 4 Mt/y of LNG starting in 2028 provides the Indian utility and energy provider with predictable, diversified volumes as domestic consumption continues to climb and the nation seeks to increase the share of natural gas in its primary energy mix.

The timing of the agreement aligns with broader shifts in the global LNG landscape, where buyers and sellers are increasingly locking in long-term contracts to hedge against market volatility and ensure security of supply. As major production hubs around the world evaluate upcoming liquefaction capacity additions over the latter half of the decade, agreements finalized today are crucial for underpinning the multibillion-dollar investments required to bring new export facilities online. ADNOC’s expanding portfolio of LNG projects, supported by strategic partnerships and dedicated investment arms like XRG, places the company in a strong competitive position to meet this sustained international demand.

The commercial framework established between XRG and Gujarat Energy highlights the deepening economic cooperation between the United Arab Emirates and India. Over recent years, energy trade between the two nations has transcended traditional spot-market transactions, evolving into comprehensive, long-term partnerships that span upstream exploration, downstream refining, and now substantial LNG offtake commitments. As India pursues its national economic development objectives and its long-term environmental targets, natural gas remains a cornerstone transition fuel, smoothing the path toward lower emissions while ensuring energy security and grid reliability.

As preparations for the 2028 supply launch get underway, market observers will be watching closely to see how the operational integration between ADNOC, XRG, and Gujarat Energy unfolds. The multi-million-tonne per annum contract not only secures a reliable outlet for Abu Dhabi’s expanding natural gas production capabilities but also guarantees a dependable, long-term energy lifeline for one of India’s premier energy consumers.