India and the UAE signed major energy agreements during PM Narendra Modi’s Abu Dhabi visit, focusing on strategic oil storage, LPG supply, and long-term energy security cooperation.

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• India and the UAE signed a major strategic petroleum reserve agreement aimed at strengthening long-term energy security and emergency crude oil availability.
• Under the proposed agreement, ADNOC may store up to 30 million barrels of crude oil inside India’s strategic petroleum reserve facilities.
• The storage cooperation includes Visakhapatnam strategic reserve facilities, proposed infrastructure at Chandikol in Odisha, and possible reciprocal storage arrangements in Fujairah.
• Strategic petroleum reserves help countries manage war-related disruptions, shipping bottlenecks, geopolitical tensions, and sudden fluctuations in global crude oil prices.
• ADNOC’s participation is expected to improve India’s supply diversification strategy and strengthen long-term bilateral energy cooperation with the United Arab Emirates.
• India and the UAE also signed a long-term Liquefied Petroleum Gas supply agreement supporting household, commercial, and industrial energy requirements.
• The partnership gains significance amid rising geopolitical tensions in West Asia and increasing concerns regarding global energy supply stability and shipping routes.
• The Strait of Hormuz remains one of the world’s most critical oil transit corridors, making regional energy partnerships strategically important for India.