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India, UAE seal major oil reserve & LPG agreements as Modi backs Abu Dhabi amid West Asia tensions

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India and the United Arab Emirates on Friday signed two major agreements in the petroleum and energy sector, including a strategic pact to expand crude oil storage in India’s strategic reserves and a long-term liquefied petroleum gas (LPG) supply collaboration, as Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan held wide-ranging talks amid rising regional tensions in West Asia.The agreements emerged as the centrepiece of Modi’s brief but high-impact visit to Abu Dhabi, during which both countries also concluded key understandings in defence, shipping, infrastructure, artificial intelligence and maritime skill development, while the UAE announced investments worth USD 5 billion in India.The most significant outcome was an MoU on strategic collaboration between Indian Strategic Petroleum Reserves Limited (ISPRL) and Abu Dhabi National Oil Company (ADNOC), aimed at substantially deepening bilateral energy security cooperation.Under the agreement, ADNOC may store up to 30 million barrels of crude oil in India’s strategic petroleum reserve facilities, including participation in storage infrastructure at Visakhapatnam in Andhra Pradesh and future reserve facilities in Chandikhol, Odisha.The pact also envisages the possible storage of Indian crude reserves in Fujairah in the UAE — a move expected to significantly strengthen India’s emergency energy preparedness and supply chain resilience amid global geopolitical uncertainties.The agreement further opens the door for collaboration in LNG and LPG storage facilities in India.In another key development, Indian Oil Corporation Limited (IOCL) and ADNOC signed a strategic collaboration agreement to explore long-term LPG supply arrangements, including a comprehensive sale and purchase framework between ADNOC Gas and IOCL.Officials said the agreement would further reinforce India’s energy security architecture, especially as the UAE already accounts for nearly 40 per cent of India’s LPG imports and remains among the country’s largest crude oil and LNG suppliers.The energy-focused outcomes came at a time when instability in the Gulf region and threats to maritime routes around the Strait of Hormuz have sharpened concerns over global energy flows and supply disruptions.During his meeting with Sheikh Mohamed bin Zayed, Modi strongly condemned the recent attacks targeting the UAE and expressed solidarity with Abu Dhabi.“The way the UAE has been targeted is not acceptable in any form,” Modi said during bilateral talks, while praising the Emirati leadership’s “patience, courage and resolve” during the crisis.“India stands shoulder-to-shoulder with the UAE and will continue to do so,” he said, reiterating India’s support for dialogue, diplomacy and adherence to international law.In a statement after the talks, Modi described the visit as “short but highly productive” and said the agreements signed would give “fresh impetus” to the India-UAE Comprehensive Strategic Partnership.The two sides also signed a Framework for Strategic Defence Partnership that envisages enhanced cooperation in defence industrial collaboration, advanced technologies, maritime security, cyber defence, special operations, interoperability, and secure communications.India’s maritime ambitions also received a push with Cochin Shipyard Limited signing agreements with Dubai-based Drydocks World for setting up a ship repair cluster at Vadinar under India’s Maritime Development Fund Scheme.Another tripartite agreement involving Cochin Shipyard, Drydocks World and the Centre of Excellence in Maritime & Shipbuilding focuses on training and deploying a skilled maritime workforce, positioning India as a hub for global shipbuilding and ship repair talent.In the technology domain, a term sheet was signed between India’s Centre for Development of Advanced Computing (CDAC) and UAE-based G42 for establishing an 8-exaflop supercomputing cluster under India’s AI Mission.The UAE also announced major investment commitments, including up to USD 1 billion in infrastructure investments through a partnership between Abu Dhabi Investment Authority (ADIA) and India’s National Infrastructure and Investment Fund (NIIF).Additionally, Emirates NBD announced a proposed USD 3 billion investment in RBL Bank, while International Holding Company committed USD 1 billion investment in Sammaan Capital.Officials said the visit reflected the rapidly expanding strategic depth of India-UAE relations spanning energy, defence, logistics, technology, and investments, while also underscoring growing coordination between the two countries on regional security and economic resilience.

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