NEW DELHI: Energy security will emerge as the centrepiece of Prime Minister Narendra Modi’s high-stakes stopover in Abu Dhabi on May 15 for talks with UAE President Mohammed bin Zayed Al Nahyan, amid escalating tensions in West Asia and shifting global oil equations.
During the three-hour visit to the UAE -- en route to his four-nation Europe tour covering the Netherlands, Sweden, Norway and Italy -- India and the UAE are expected to sign two key memoranda of understanding on liquefied petroleum gas (LPG) supplies and strategic petroleum reserves, further deepening a partnership critical to India’s energy needs, sources familiar with the development said.
The visit comes at a time of heightened volatility in global energy markets and renewed focus on supply diversification. Sources said the proposed agreements are aimed at strengthening long-term energy stability for India while expanding the UAE’s role as one of New Delhi’s most trusted energy partners.
The UAE currently meets nearly 40 per cent of India’s LPG requirements, making it the country’s largest supplier. It was also India’s fourth-largest source of crude oil last year, accounting for nearly 11 per cent of total imports, while ranking as the third-largest supplier of LNG. Indian companies and ADNOC Gas have signed long-term agreements for cumulative LNG supplies of 4.5 MMTPA, making India the largest buyer of UAE-origin LNG.
The two sides are also expected to review cooperation on India’s strategic petroleum reserves. In 2018, the Indian Strategic Petroleum Reserves Ltd (ISPRL) and Abu Dhabi National Oil Company (ADNOC) signed an agreement allowing the UAE to store more than five million barrels of crude oil at the Mangaluru reserve facility, the first such arrangement India entered into with any country.
Energy ties have steadily evolved into a broader strategic partnership involving upstream investments and clean energy collaboration. In 2018, a consortium of Indian firms — OVL, BPRL and IOCL — acquired a 10 per cent stake in Abu Dhabi’s Lower Zakum offshore block.
A year later, Urja Bharat Pvt Ltd, a joint venture between BPRL and IOCL, secured a stake in Abu Dhabi Onshore Block-1. In January this year, BPRL confirmed an oil discovery in the block, marking one of India’s first successful upstream investments in the West Asia region.
India and the UAE are also accelerating cooperation in renewable energy. UAE clean energy major Masdar signed an agreement with the Rajasthan government in October 2024 to develop 60 GW of renewable energy capacity. Both countries are additionally exploring the feasibility of electricity grid interconnection.
Beyond energy, discussions during Modi’s visit are expected to cover trade, investment and the welfare of nearly 4.5 million Indians living in the UAE.
The UAE leg will kick off Modi’s five-nation visit, which will subsequently focus on expanding India’s trade, technology and investment ties with European and Nordic partners following the India-EU trade understanding reached earlier this year.
MEA Secretary (West) Sibi George said the visit would cover “the full spectrum of bilateral relations”, including business engagement, semiconductors and connectivity initiatives such as the India-Middle East-Europe Economic Corridor (IMEC). “With the Netherlands, semiconductors are a key area of cooperation,” George said, adding that advanced semiconductor collaboration and IMEC-related discussions would feature prominently during the European leg of the trip.
