India and UAE Strengthen Ties with LNG and Nuclear Agreements During Crown Prince's Visit
India and the United Arab Emirates (UAE) have bolstered their Comprehensive Strategic Partnership with the signing of key agreements on liquefied natural gas (LNG) supplies and nuclear power cooperation. The agreements were finalized during the official visit of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to New Delhi on September 9-10, 2024.
A significant highlight of the visit was a long-term LNG supply agreement between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited (IOCL). Under this deal, ADNOC will supply 1 million metric tonnes per annum (MMTPA) of LNG to India, further enhancing India's energy security by diversifying its gas supply sources. This agreement follows previous LNG deals between ADNOC and Indian energy companies IOCL and GAIL, which secured 1.2 MMTPA and 0.5 MMTPA, respectively. The expanding partnerships in the energy sector underscore the growing cooperation between India and the UAE in addressing mutual energy needs.
Another milestone during the Crown Prince's visit was the signing of a Memorandum of Understanding (MoU) between India's Nuclear Power Corporation of India Limited (NPCIL) and the Emirates Nuclear Energy Corporation (ENEC). The MoU outlines collaboration in nuclear power plant operations, the procurement of nuclear equipment and services from India, and potential avenues for mutual investment in nuclear power projects. This agreement marks a new chapter in India-UAE nuclear cooperation, aligning with both nations' goals of fostering clean energy initiatives.
In addition to energy cooperation, both nations signed a MoU between ADNOC and India Strategic Petroleum Reserve Limited (ISPRL) to explore expanded crude oil storage capacities in India. ADNOC has maintained crude oil storage at ISPRL's Mangalore facility since 2018, and the new agreement aims to renew this partnership while considering new storage opportunities. The agreement strengthens India’s strategic oil reserves, further supporting its energy security.
A significant oil production concession was also awarded to Urja Bharat, a joint venture between IOCL and Bharat Petro Resources Ltd, granting them access to Abu Dhabi’s Onshore Block 1. This is the first concession of its kind awarded to an Indian company in the UAE, offering India greater access to crude oil reserves and strengthening its energy landscape.
Crown Prince Sheikh Khaled held bilateral discussions with Indian Prime Minister Narendra Modi, reviewing the progress of the Comprehensive Economic Partnership Agreement (CEPA) and identifying new areas for collaboration, including critical minerals and advanced technologies. The leaders also celebrated the recent implementation of the Bilateral Investment Treaty (BIT), which has further solidified economic ties between the two nations.
The Crown Prince's delegation also met with President Droupadi Murmu, who thanked the UAE for hosting over 3.5 million Indian nationals and emphasized the deepening ties across multiple sectors. Following his visit to New Delhi, the Crown Prince will travel to Mumbai to participate in the India-UAE Business Forum, where further business collaborations will be explored.