Nigeria Gas Export To India Strains As UAE Sign 10-year Export Agreement

Nigeria’s Liquified Natural Gas (LNG), export to India may face some challenges as the Abu Dhabi National Oil Company (ADNOC), in the United Arab Emirates (UAE) has signed a long-term LNG sales and purchase agreement (SPA) with India’s Gujarat Energy Ltd. (GEL). 

It is the first sale of gas from the international portfolio of XRG, ADNOC’s international investment company. Under the 10-year deal, GEL will receive up to 4 million tonnes of LNG starting in 2028. It is ADNOC’s fifth LNG supply agreement in India.

“It represents the first sale of molecules from XRG’s international portfolio, reinforcing our commitment to delivering reliable, long-term LNG supplies,” said Rashid Al Mazrouei, ADNOC’s chief marketing and origination officer for LNG. “Through our integrated LNG marketing and trading platform, we are connecting our growing international portfolio with customers in key regions across the global markets.”

The agreement was concluded through ADNOC’s global LNG marketing and trading platform, launched in Abu Dhabi Global Market in July. The platform has also signed supply deals with INPEX in Japan and Gulf Group in Thailand, and it targets 47 mtpa of marketable LNG beyond 2030. 

The ADNOC said the deal links XRG-owned supply produced outside the Gulf with demand in India. It comes days after XRG agreed to buy Shell’s stake in Australia’s North West Shell LNG project. 

“GEL leads the market at every stage of the energy journey, backed by robust regasification infrastructure, a widespread city gas network operating across 44 districts in six states, and a fast-growing trading presence in India,” said Avantika Singh Aulakh, managing director of GEL.

It will be reported that India before then is rapidly diversifying its liquefied natural gas (LNG) supplies as shipments from Qatar, once its largest supplier, fell to zero in August amid continuing geopolitical tensions in West Asia. 

The United States emerged as India’s biggest LNG supplier during the month, while Nigeria became the second-largest source, according to data from commodity analytics firm Kpler.

India imported 858,500 tonnes of LNG from the US in August, an 18.6 per cent increase from July’s 723,800 tonnes. US supplies accounted for around 35 per cent of India’s LNG imports. 

Nigeria supplied 540,700 tonnes, up 84 per cent from the previous month, accounting for 22 per cent of total imports.

Overall, India’s LNG imports rose 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 among the other suppliers.

The shift comes as disruptions linked to the US-Iran conflict and attacks affecting energy infrastructure have complicated supplies from the Gulf. Qatar, which previously accounted for about 45 per cent of India’s gas imports, has faced disruptions after an attack on its Ras Laffan Industrial City in March.

Qatar accounts for about 19 per cent of global LNG supply, and restoring its full capacity could take months.

The developments highlight India’s growing focus on energy-source diversification.

Analysts, however, warn that LNG remains more vulnerable than crude oil to Gulf supply and shipping disruptions because short-term substitution options are limited. With tensions around the Strait of Hormuz continuing, India’s broader energy security strategy is increasingly centred on maintaining multiple sources of supply.