Nigeria could face stronger competition in India’s liquefied natural gas (LNG) market after the United Arab Emirates’ Abu Dhabi National Oil Company (ADNOC) signed a long-term supply agreement with Gujarat Energy Limited (GEL).
Under the 10-year deal, GEL will receive up to four million tonnes of LNG annually from 2028. The agreement marks the first sale of gas from the international portfolio of XRG, ADNOC’s international investment company, and its fifth LNG supply agreement in India.
ADNOC’s Chief Marketing and Origination Officer for LNG, Rashid Al Mazrouei, said the deal would strengthen the company’s commitment to reliable, long-term supplies.
“It represents the first sale of molecules from XRG’s international portfolio, reinforcing our commitment to delivering reliable, long-term LNG supplies,” he said.
The agreement was reached through ADNOC’s global LNG marketing and trading platform, launched in Abu Dhabi Global Market in July. The platform has also signed supply agreements with INPEX in Japan and Gulf Group in Thailand.
ADNOC is targeting 47 million tonnes per annum (mtpa) of marketable LNG beyond 2030. The latest agreement connects supplies owned by XRG and produced outside the Gulf with growing demand in India.
GEL Managing Director Avantika Singh Aulakh said the company had strong regasification infrastructure, a city gas network covering 44 districts in six states and a growing trading presence.
Nigeria gains as India diversifies LNG supplies
The agreement comes as India rapidly diversifies its LNG sources amid disruptions to supplies from the Gulf.
Shipments from Qatar, previously India’s largest supplier, fell to zero in August amid geopolitical tensions in West Asia. The United States became India’s biggest LNG supplier, while Nigeria ranked second, according to data from commodity analytics firm Kpler.
India imported 858,500 tonnes from the US in August, an 18.6 per cent rise from July. US supplies accounted for about 35 per cent of the country’s total LNG imports.
Nigeria supplied 540,700 tonnes, an 84 per cent increase from the previous month, representing 22 per cent of India’s imports.
Overall, India’s LNG imports rose by 5.2 per cent to 2.5 million tonnes in August, compared with 2.3 million tonnes in July. Oman supplied 524,700 tonnes, while the UAE contributed 244,400 tonnes. Mozambique and Australia were also among the suppliers.
The shift follows disruptions linked to the US-Iran conflict and attacks on energy infrastructure. Qatar’s Ras Laffan Industrial City was attacked in March, affecting supplies from a country that previously accounted for about 45 per cent of India’s gas imports.
Qatar provides around 19 per cent of global LNG supplies, and restoring its full capacity could take months.
The developments underline India’s efforts to secure supplies from multiple sources. However, analysts warn that LNG is more exposed than crude oil to Gulf disruptions because replacing supplies at short notice can be difficult.
With tensions around the Strait of Hormuz continuing, India is placing greater importance on diversifying its energy sources. ADNOC’s latest agreement could therefore increase competition for suppliers, including Nigeria.
