Gujarat Energy Limited has signed a Long-Term Sales and Purchase Agreement (SPA) with ADNOC Trading Limited for the procurement of 0.4 Million Tonne Per Annum (MMTPA) of Liquefied Natural Gas (LNG). The pricing for this agreement is linked to the Henry Hub index, ensuring competitive sourcing of vital energy resources. This strategic deal aims to enhance energy security for Gujarat Energy’s customers and India at large, contributing to the nation’s energy independence.
Gujarat Energy Secures Long-Term LNG Supply
Gujarat Energy Limited (GEL) announced today, November 6, 2026, the execution of a significant Long-Term Sales and Purchase Agreement (SPA) with ADNOC Trading Limited. This agreement is poised to bolster the company’s energy procurement strategy and contribute to India’s energy security.
Key Terms of the Agreement
Under the terms of the SPA, GEL will procure approximately 0.4 Million Tonne Per Annum (MMTPA) of Liquefied Natural Gas (LNG) from ADNOC’s international gas portfolio. A key aspect of this agreement is that the pricing will be dynamically linked to the Henry Hub index, providing a transparent and potentially cost-effective sourcing mechanism.
Strategic Importance and Benefits
The signing of this long-term LNG contract is expected to significantly improve energy security for GEL’s customers and contribute positively to India’s overall energy landscape. The company, with a market capitalization of approximately Rs. 20,000 Crore, views this as a crucial step in securing stable and competitive energy supplies. This move aligns with the company’s strategy to enhance its portfolio and meet growing energy demands reliably.
Source: BSE
