India and the United Arab Emirates (UAE) have recently sealed significant agreements to bolster their energy cooperation and strategic alliances, marking a historic milestone in their relationship. The deals span across various sectors, from liquefied natural gas (LNG) to nuclear energy and crude oil. Prime Minister Narendra Modi warmly welcomed Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi, expressing his delight at the fruitful discussions that ensued. This visit heralds a new era of collaboration between India and the UAE.
The visit of Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to India holds immense significance for both nations, as it underscores their commitment to strengthening bilateral ties. Prime Minister Modi engaged in extensive talks with Prince Khaled, focusing on enhancing the relationship between the two countries. These agreements underscore the deepening bond between India and the UAE as they work together to bolster energy security, foster technological advancements, and reinforce economic cooperation. The robust bilateral trade, which hit around USD 85 billion in 2022-23, underscores the strong economic partnership between the two nations.
The thriving Indian community in the UAE serves as a testament to the deep cultural and social connections between the two countries. Both nations are keen on exploring new avenues of collaboration to ensure mutual benefits and solidify their enduring relationship. The visit of Prince Khaled bin Mohamed bin Zayed Al Nahyan has set the stage for enhanced cooperation across various domains.
### UAE Powers Up India’s Energy Security
One of the key agreements focuses on bolstering the UAE’s involvement in India’s Strategic Petroleum Reserves, a crucial step in securing India’s energy future. The collaboration between Urja Bharat, a joint venture of Indian Oil Corporation Ltd and Bharat Petro Resources Ltd, and the Abu Dhabi National Oil Company (ADNOC) through a production concession agreement will enable India to source crude oil from Abu Dhabi Onshore Block 1, significantly enhancing its energy security. The Strategic Petroleum Reserves initiative, launched in 2004, has been instrumental in fortifying India’s energy security, with the Indian Strategic Petroleum Reserve Ltd (ISPRL) strategically storing crude oil at various sites, including Mangalore.
### 15-Year LNG Supply Agreement with ADNOC
Another breakthrough in the energy sector is the signing of a 15-year agreement between ADNOC and Indian Oil Corporation Limited (IOCL) for the supply of LNG. ADNOC will provide 1 MMTPA of LNG to IOCL from its Ruwais gas project, focusing on sustainable, low-carbon production. The Ruwais project, powered by clean energy, is poised to significantly boost ADNOC’s LNG output, positioning it as a major player in the LNG market. This agreement underscores ADNOC’s commitment to expanding its presence in the energy sector and competing with regional rivals.
### Expanding Collaboration in Nuclear Energy
In addition to fossil fuels, India and the UAE are exploring opportunities in nuclear energy. The Nuclear Power Corporation of India Limited (NPCIL) and the Emirates Nuclear Energy Corporation (ENEC) have signed a MoU outlining a framework for operating and maintaining the UAE’s first nuclear power plant at Barakah. This partnership allows India to share its expertise in nuclear technology and services while exploring investment prospects in the UAE. The commercial launch of the fourth and final reactor at the Barakah plant is a significant milestone in the UAE’s nuclear energy ambitions.
### Beyond LNG and Nuclear…
Apart from LNG and nuclear energy, India and the UAE are keen on collaborating in cutting-edge technologies such as green hydrogen, artificial intelligence, and critical minerals. The memorandum of understanding between The Abu Dhabi Developmental Holding Company (ADQ) and the Gujarat Government of India paves the way for establishing a food and agriculture park in Ahmedabad. This diverse collaboration underscores the commitment of both nations to technological innovation and sustainable energy solutions, positioning them as leaders in the global energy transition.
The visit of Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to India has set the stage for a new chapter in the bilateral relationship, emphasizing mutual cooperation and shared goals. The agreements signed between the two nations reflect their commitment to enhancing energy security, fostering technological advancements, and promoting sustainable practices. India and the UAE’s collaboration holds immense potential for driving innovation and progress in the energy sector, setting a precedent for global partnerships in the pursuit of a greener future.
