Gujarat Energy on Friday, November 6, signed an agreement with Abu Dhabi National Oil Company (ADNOC) for the procurement of up to 4 million tonnes of Liquified Natural Gas.
The company said it signed a long-term Sales and Purchase Agreement (SPA) with ADNOC to procure the commodity from the international gas portfolio of XRG, the UAE-based energy company’s international investment arm, according to a regulatory filing on Friday.
XRG is ADNOC’s wholly-owned international investment company, headquartered in Abu Dhabi, with an enterprise value of more than $150 billion. It invests in natural gas, chemicals and energy solutions supporting global industries and AI infrastructure.
According to the filing, Gujarat Energy will receive up to 4 million tonnes of LNG over a period of ten years, starting in 2028. The agreement also marks ADNOC’s fifth LNG supply agreement in India, the filing said.
Rashid Al Mazrouei, ADNOC’s Chief Marketing and Origination Officer (LNG), said the agreement strengthened the company’s energy partnership with India and marked the first sale of LNG from XRG’s international portfolio. He added that ADNOC would provide reliable, flexible and long-term LNG supplies to the country.
The deal was finalised through ADNOC’s new global LNG marketing and trading platform, which targets 47 million tonnes per annum (mtpa) of marketable LNG beyond 2030 according to the filing.
Within Asia, the platform has finalised deals with INPEX in Japan, Gulf Group in Thailand, apart from the current deal.
The deal comes amid heightened geopolitical tensions in West Asia, which have disrupted global crude supplies and added to price volatility since the war broke out on February 28.
On Friday, oil prices steadied after a volatile week but remained on track for their biggest weekly decline since April, as investors bet on an end to the months-long conflict.
However, crude prices edged closer to the $100-per-barrel mark as markets weighed comments by US President Donald Trump on Thursday that Iran could not take any action on its nuclear programme without Washington’s approval. Brent crude, the global benchmark, traded at $99.78 a barrel in intraday trade.
How has Gujarat Energy’s stock reacted?
The company’s shares continued to trade in the red, falling 3.65% at 11:53 am on Friday, after it reported a weak set of second-quarter results following market hours on Thursday.
its net profit declined 35.9% quarter-on-quarter to ₹639.3 crore from ₹998 crore. Revenue rose 1.5% to ₹9,590 crore from ₹9,444 crore. EBITDA fell 38.5% to ₹797.2 crore from ₹1,295.4 crore, while the EBITDA margin narrowed to 8.31% from 13.72%.
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