UAE's Shift in Energy Policy Creates New Opportunities for India Ahead of Modi Visit

India's Energy Security Gets a Boost from UAE's Evolving Energy Strategy

India's Ambassador to the United Arab Emirates, Deepak Mittal, said on Thursday that the UAE's decision to exit the OPEC bloc could open new avenues for strengthening its role in India's energy security. According to Mittal, the Gulf nation's recent shift in its energy policy could further expand cooperation in production, infrastructure investment, and diversification of energy sources.

Speaking ahead of Prime Minister Narendra Modi's visit to the UAE on May 15, Mittal noted that the India-UAE energy partnership has become increasingly strategic, moving beyond a traditional buyer-seller relationship. India is simultaneously expanding its own energy infrastructure, including pipeline networks and strategic storage for crude, LPG, and LNG.

The UAE has been a significant partner for India in energy security, with the Gulf nation meeting nearly 11% of India's crude requirements last year. The UAE is also the third-largest supplier of LNG to India over the past six to seven years. This strategic partnership is set to deepen, with Mittal highlighting that the UAE's recent decision to exit OPEC could open up new opportunities for cooperation.

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The UAE's national oil company, ADNOC, has signed long-term contracts with Indian companies for over 4.5 million metric tonnes of LNG. The Gulf nation also provides a significant market for India's petroleum, oil, and lubricant exports, with over $6 billion in trade recorded last year.

Mittal underscored the UAE's participation in India's strategic petroleum reserves, calling it a key pillar of energy cooperation. The UAE is the first and only country to have participated in India's strategic petroleum reserves, with over 5 million barrels of crude storage in India.

Energy cooperation will remain a central pillar of India-UAE ties during the upcoming high-level engagements, including Prime Minister Narendra Modi's visit to the UAE. During the visit, two important MoUs in the areas of LPG and Strategic Petroleum Reserves are likely to be concluded.

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Prime Minister Modi will begin his five-nation tour in the UAE on May 15, where he will meet the President of the UAE, Sheikh Mohammed bin Zayed Al Nahyan. They will exchange views on bilateral relations, including energy cooperation, as well as regional and international issues of mutual interest.