ADNOC seals two-million-tonne LNG supply pact with Gulf

ADNOC has agreed to supply Thailand’s Gulf Group with approximately two million tonnes of liquefied natural gas under a multi-year contract, with deliveries scheduled to begin in 2027.

The Sales and Purchase Agreement expands a commercial relationship established through the companies’ first LNG supply deal in 2025 and gives ADNOC Trading a larger direct role in supplying the Asian market. Neither company disclosed the value, pricing formula, exact duration of the contract or the source of the cargoes.

ADNOC said its trading arm would deliver the contracted LNG through the Abu Dhabi energy group’s integrated LNG marketing and trading platform. The platform was launched at Abu Dhabi Global Market in July, combining LNG marketing and trading capabilities within a single commercial operation intended to provide greater flexibility over cargoes and shipping.

Nasser Al Muhairi, acting chief executive of ADNOC Downstream Industry, Marketing and Trading, said the agreement built on the first supply arrangement with Gulf Group and reinforced the company’s commitment to reliable supplies for Thailand and other Asian customers.

“It marks another milestone in ADNOC’s global LNG marketing and trading platform, enhancing the scale, flexibility and optionality of our LNG solutions to meet growing global demand,” Al Muhairi said.

Gulf Development Public Company Limited, the listed company at the centre of Gulf Group, separately confirmed that total deliveries under the new agreement would be close to two million tonnes and would start in 2027. The Bangkok-based group has been developing its LNG business alongside investments in power generation and infrastructure.

Sarath Ratanavadi, chief executive of Gulf Development, said the agreement reflected the group’s strategy of building a diversified and resilient LNG portfolio around its trading business. He said securing midstream infrastructure, shipping capacity and relationships with suppliers would strengthen the group’s value chain and provide greater flexibility to meet energy demand.

The transaction comes as Thailand remains heavily dependent on natural gas for electricity generation and seeks greater diversity in imported LNG supplies. Gas accounts for more than 60 per cent of the country’s power generation, making continuity of supply particularly important for its electricity system.

Thailand’s exposure to imported LNG has also drawn greater attention amid disruptions to Middle East gas flows this year. About 2.2 million tonnes of Thailand’s annual LNG imports normally transit the Strait of Hormuz, equivalent to roughly 24 per cent of its LNG imports, according to estimates from Krungsri Research. Supply interruptions in the Gulf have increased the focus among Asian buyers on alternative cargoes and diversified sourcing.

ADNOC’s agreement with Gulf Group forms part of a broader expansion of its LNG commercial operations. The company said its integrated platform is targeting 47 million tonnes per annum of marketable LNG beyond 2030, as it increases access to its own production and third-party cargoes.

The platform brings together LNG marketing activities across ADNOC’s portfolio with ADNOC Trading’s trading capabilities. ADNOC Trading remains the counterparty for LNG trading transactions and operates from Abu Dhabi, Singapore and Geneva. The company says it has built a substantial third-party LNG portfolio within four years.

ADNOC is also increasing its physical LNG production capacity. Its Ruwais LNG project in Abu Dhabi is designed for annual production of 9.6 million tonnes from two liquefaction trains and is scheduled to begin commercial operations in 2028. The project is expected to more than double ADNOC Gas’s operated LNG production capacity to about 15 million tonnes annually.

More than 90 per cent of Ruwais LNG’s planned production capacity has already been committed through long-term agreements with customers in Asia and Europe, according to ADNOC. Those arrangements include contracts intended to establish a diversified customer base before the plant enters commercial operation.

The new Gulf Group contract, by contrast, will start a year before Ruwais LNG is scheduled to enter service. ADNOC has not specified which production source or third-party portfolio will provide the cargoes covered by the Thai agreement.