UAE's $5 Billion Energy Push—How It Will Strengthen India's Oil Reserves, LPG Supply

In a major boost to bilateral ties, India and the UAE signed a series of landmark agreements covering strategic petroleum reserves, long-term LPG supply, defence cooperation and shipping, while Abu Dhabi pledged investments worth USD 5 billion in India. The agreements were finalised during Prime Minister Narendra Modi’s high-level talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan amid rising tensions in West Asia.Among the six key pacts was a strategic collaboration agreement between Indian Strategic Petroleum Reserves Limited (ISPRL) and Abu Dhabi National Oil Company (ADNOC) aimed at strengthening India’s energy security. The agreement includes cooperation on strategic petroleum reserves and potential collaboration in liquefied natural

gas (LNG) and liquefied petroleum gas (LPG) storage facilities.According to an official statement, the partnership will expand the UAE’s participation in India’s strategic petroleum reserves to 30 million barrels and also support the creation of strategic gas reserves in the country.A separate pact between Indian Oil Limited Company and Abu Dhabi National Oil Company will facilitate new opportunities in the sale and purchase of LPG, including long term supply of the fuel and entry into a long-term sale-and-purchase agreement between the two companies.The visit comes amid tensions in the Gulf over oil, the Strait of Hormuz blockade, and regional alignments involving Israel and Iran.

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Strategic collaboration on LPG discussed

The two sides also signed a separate strategic collaboration pact on LPG, which is supposed to ensure long-term supply of the cooking fuel widely used in India. India and the UAE also signed a framework for a strategic defence partnership which focuses on defence industrial collaboration, technology sharing, innovation and regional security cooperation, the Ministry of External Affairs (MEA) said.Under the framework, the two countries are set to explore joint development of military hardware besides boosting cooperation in a number of other crucial areas.The agreements came amid the ongoing conflict in West Asia, which has heightened concerns in India over disruptions to crude oil and gas supplies through the Strait of Hormuz, a critical shipping route for the country's energy imports.The prime minister described the agreements inked between the two sides as "pivotal" in vital sectors such as energy, defence, infrastructure, shipping and advanced technologies. He said they will provide a "fresh boost" to India-UAE comprehensive strategic partnership.PM Modi said his visit to the UAE was "brief, yet extraordinarily fruitful" and he was confident that the outcomes will "further solidify the bonds of friendship between us, and contribute to achieving growth and prosperity."The UAE announced investments worth USD 5 billion in India - which, Modi said, will "further deepen economic ties."(With PTI inputs)