Adnoc Secures Major LNG Supply Deal with Thailand's Gulf Development Amid Gulf Disruption

Adnoc has agreed to supply approximately two million tonnes of liquefied natural gas to Thailand’s Gulf Development, enhancing the nation's fuel access as the ongoing Iran war disrupts Middle Eastern supplies.

Announced on Monday, deliveries under this multi-year sales and purchase agreement are scheduled to begin in 2027. Although financial terms, contract duration, and specific cargo sourcing locations were not disclosed by Adnoc, the pact expands upon an initial LNG supply agreement signed between the two companies in 2025.

This new agreement arrives as Thailand actively works to diversify its LNG sources following sharp shipment curtailments from the Gulf due to the conflict. Data from Thailand-based Krungsri Research indicates that natural gas drives over 60 per cent of the country’s power generation, with roughly 24 per cent of its LNG imports—amounting to 2.2 million tonnes annually—typically transiting the Strait of Hormuz, predominantly originating from Qatar. In response, state-controlled PTT has actively investigated alternative supplies spanning Oman, Mexico, and Canada.

The regional conflict has severely destabilized a global LNG market already bracing for tighter seasonal demand. The Strait of Hormuz, a critical trade artery handling about a fifth of global crude and LNG prior to the conflict's late February onset, remains largely closed. Following a force majeure declaration by QatarEnergy in early March and an Iranian missile strike on the Ras Laffan complex on March 18—which disabled nearly 17 per cent of Qatar's LNG production capacity—cargo cancellations for select Asian buyers have stretched through November, driving Asian and European prices to their highest peaks since late 2022. Consequently, Gulf LNG exports linger significantly below their prewar average of three shipments daily.

“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,” stated Nasser Al Muhairi, acting chief executive of Adnoc downstream industry, marketing and trading.

Gulf Development chief executive Sarath Ratanavadi emphasized that the deal supports the creation of a “diversified, resilient LNG portfolio” while granting the company enhanced flexibility to satisfy domestic demand.

Shipments will be fulfilled via Adnoc Trading and its dedicated LNG marketing and trading platform, established in Abu Dhabi’s financial centre ADGM in July. Looking ahead, Adnoc aims to achieve 47 million tonnes per year of marketable LNG beyond 2030 as part of broader portfolio expansion and trading initiatives.