Two key energy cooperation agreements to be signed during PM’s UAE visit

ENergy certificate testament be a focalise country of undercoat Minister Narendra Modi’s visit to the United Arab Emirates (UAE) on May 15, the first leg of a five-nation tour, and the two sides are expected to sign key agreements on Liquefied petroleum gas (LPG) supplies and strategic petroleum reserves, people familiar with the matter said.Modi’s six-day visit will also take him to the Netherlands, Sweden, Norway and Italy, and collaboration in energy and technology, along with measures to cope with the economic fallout of the West Asia conflict, are set to top the agenda in most of the countries, the people said on condition of anonymity.The Indian side has focused on shoring up energy cooperation with key suppliers in West Asia amid disruptions due to the closure of the Strait of Hormuz, and Modi’s discussions with the UAE leadership during a brief stopover in Abu Dhabi are expected to cover both energy cooperation and the welfare of the 4.5 million Indians living in the Emirates.The Indian Oil Corporation and Abu Dhabi National Oil Company (ADNOC) are expected to sign a strategic collaboration agreement on supplies of liquefied petroleum gas (LPG), while the Indian Strategic Petroleum Reserves Limited (ISPRL) and ADNOC are expected to ink a strategic collaboration agreement on strategic oil reserves, the people said.ADNOC already has an agreement with ISPRL to store more than five million barrels of crude oil at a facility in Mangalore.Sibi George, secretary (West) in the Ministry of External Affairs, told a media briefing that energy cooperation will be in focus during the meeting between Modi and UAE President Mohamed bin Zayed Al Nahyan.The UAE is an important partner for energy security, as it was the fourth-largest source of crude oil in 2025, meeting almost 11% of India’s needs, said Aseem Mahajan, additional secretary (Gulf) in the Ministry of External Affairs. India is the largest buyer of UAE’s liquefied natural gas (LNG), with Indian companies having signed long-term supply contracts with ADNOC for 4.5 million metric tonnes per annum (mmtpa).The UAE is also India’s largest source of LPG and meets almost 40% of the country’s requirements. At the same time, it is the second-largest destination for petroleum, oil and lubricants exports by Indian refiners, and Indian companies have invested more than $1.2 billion in the UAE’s upstream sector, Mahajan said.“During the current turmoil in West Asia, the UAE has remained one of India’s most reliable energy partners. With long-term supply agreements in place, India’s energy security has been bolstered. Enhancing energy cooperation will be a key agenda of the visit,” one of the people said.Two-way trade in goods between India and the UAE has surpassed $100 billion, touching $101.25 billion in 2025-26. Both sides have now set a target of doubling trade to $200 billion by 2032. The UAE is India’s seventh-largest investor, with cumulative FDI inflows of $25.19 billion. A local currency settlement system is already in place between the two sides, reducing dollar dependence and transaction costs, the people said.