Gujarat Energy Limited, the state-owned company formed this year from the GSPC group merger, has signed a 10-year sales and purchase agreement with Abu Dhabi’s ADNOC for up to 4 million tonnes of liquefied natural gas, with deliveries starting in 2028. The supply will come from the international portfolio of XRG, ADNOC’s overseas investment arm, and it is the first sale from that portfolio, The National and DeshGujarat reported on November 6. ADNOC counts it as its fifth LNG supply agreement in India. Neither side has disclosed a price or contract value.
Gas produced beyond the Strait of Hormuz
The XRG volumes are produced outside the Gulf and will be marketed through ADNOC’s new global LNG trading platform, according to OilPrice.com and Sharjah24. For a Gujarat buyer, that origin carries weight after this year.
In March, QatarEnergy stopped LNG production after attacks on its Ras Laffan and Mesaieed facilities. Petronet LNG, which runs the Dahej import terminal in Bharuch district, served force majeure notices because its tankers could not safely cross the Strait of Hormuz, Business Today and DT Next reported at the time. Qatar then supplied about 40% of India’s roughly 27 million tonnes of annual LNG imports. City gas distributors warned that cuts in contracted gas, with spot cargoes costing about double the contract rate, would squeeze CNG and household PNG supply.
How much gas 4 million tonnes buys
Spread evenly, the ADNOC contract works out to about 0.4 million tonnes a year. That matches the volume GSPC agreed with TotalEnergies in February 2025: a 10-year deal for about 400,000 tonnes a year beginning in 2026, according to S&P Global and GIIGNL. From 2028 the two contracts together would give the group around 0.8 million tonnes a year of term LNG, close to 3% of India’s import volume. The company has not said what share of its own needs that covers.
Gujarat Energy is the former Gujarat Gas Limited. Under a restructuring the Ministry of Corporate Affairs cleared in April, GSPC and Gujarat State Petronet merged into Gujarat Gas, the pipeline business moved into a new company, GSPL Transmission, and the merged firm took the Gujarat Energy name, DeshGujarat reported. Indian Masterminds describes it as India’s largest city gas distributor by customer base, and the company says its network covers 44 districts in six states, supplying homes, CNG stations and factories.
Long contracts, unknown price
A term contract limits how much gas a distributor has to buy on the spot market in a crisis, which is the protection households and CNG users lacked in March. Whether it lowers bills depends on the price formula, and neither side has published it. Retail gas prices have kept climbing this year; in Vadodara, CNG crossed Rs 90 a kilo before Diwali, though Vadodara Gas is a separate distributor.
Sources: The National, DeshGujarat, OilPrice.com, Sharjah24, Business Today, DT Next, S&P Global, Indian Masterminds
This report was written with AI assistance from the publicly reported sources linked here; each fact was cross-checked against at least two of them.