Adnoc has agreed to supply about two million tonnes of liquefied natural gas to Thailand’s Gulf Development, boosting the country's access to the fuel as the Iran war disrupts supplies from the Middle East.
Deliveries under the multi-year sales and purchase agreement are to start in 2027, Adnoc said on Monday. The company did not disclose prices, the length of the contract or where the cargoes will be sourced from.
The agreement builds on a first LNG supply deal between the companies signed in 2025.
The latest deal comes as Thailand seeks to diversify its LNG supplies after the war sharply curtailed shipments from the Gulf. Natural gas accounts for more than 60 per cent of the country’s power generation, while about 24 per cent of its LNG imports – about 2.2 million tonnes a year – normally pass through the Strait of Hormuz, almost all from Qatar, according to Thailand-based Krungsri Research. State-controlled PTT has been exploring alternative supplies, including from Oman, Mexico and Canada.
The regional war has upended a global LNG market that was already heading into a period of tighter seasonal demand. The strait, through which about a fifth of global crude and LNG flowed before the war began in late February, remains largely shut.
QatarEnergy declared force majeure in early March, while an Iranian missile strike on the Ras Laffan complex on March 18 knocked out about 17 per cent of Qatar's LNG production capacity. Cargo cancellations to some Asian buyers have since been extended through November, helping push prices in Asia and Europe towards their highest levels since late 2022.
Gulf LNG exports remain far below their prewar pace of about three shipments a day.
“This agreement builds on our first LNG supply agreement with Gulf Group and reinforces Adnoc’s commitment to ensuring reliable energy supplies to Thailand and our Asian customers,” said Nasser Al Muhairi, acting chief executive of Adnoc downstream industry, marketing and trading.
Gulf Development chief executive Sarath Ratanavadi said the agreement would help to build a “diversified, resilient LNG portfolio” and gave the company greater flexibility to meet demand.
The supplies will be delivered through Adnoc Trading and its LNG marketing and trading platform, launched in Abu Dhabi’s financial centre ADGM in July. Adnoc is targeting 47 million tonnes a year of marketable LNG beyond 2030 as it expands its portfolio and trading operations.
