Adnoc to supply 2 million tonnes of LNG to Thailand amid war disruptions

Adnoc has signed a major liquefied natural gas (LNG) supply deal with Thailand's Gulf Development, aiming to mitigate disruptions caused by the Iran war. The agreement, announced on Monday, involves supplying about 2 million tonnes of LNG annually, with deliveries set to begin in 2027. This follows a previous LNG supply deal between the two companies in 2025 and comes as Thailand seeks to diversify its energy sources amid regional instability.

The Iran war has significantly disrupted Middle East LNG supplies, particularly through the Strait of Hormuz, which normally handles about 2.2 million tonnes of Thailand's annual LNG imports. A missile strike on Qatar's Ras Laffan complex in March further exacerbated the situation, knocking out 17% of the country's LNG production capacity and extending cargo cancellations through November. This has pushed prices in Asia and Europe to their highest levels since late 2022.

Nasser Al Muhairi, acting chief executive of Adnoc downstream industry, marketing and trading, emphasized the company's commitment to ensuring reliable energy supplies to Thailand and its Asian customers. Gulf Development's chief executive, Sarath Ratanavadi, noted that the agreement would help build a diversified and resilient LNG portfolio, providing greater flexibility to meet demand. The supplies will be delivered through Adnoc Trading and its LNG marketing and trading platform, which 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. The deal underscores the broader efforts by Thailand to secure alternative LNG supplies from regions including Oman, Mexico, and Canada, as the Iran war continues to impact global LNG markets.