September 10, 2024
The agreements include a long-term LNG supply deal, a pact on crude oil storage, and cooperation in nuclear power plant operations and maintenance
The UAE has agreed to explore further crude oil storage opportunities in India and to renew its storage and management agreement
A production concession agreement between Urja Bharat and ADNOC marks the first UAE operation by an Indian company, contributing to India's energy security
A memorandum of understanding (MoU) was also signed to establish food parks in Gujarat, with the project expected to commence in 2025
India and the United Arab Emirates (UAE) signed four key agreements to enhance cooperation in crude oil storage, long-term LNG supply, and civil nuclear energy. This development came as Prime Minister Narendra Modi held extensive talks with Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, focusing on strengthening the strategic ties between the two nations.
According to the Ministry of External Affairs (MEA), the leaders’ discussions highlighted the need to explore new areas of potential cooperation, particularly in nuclear energy, critical minerals, green hydrogen, artificial intelligence, and emerging technologies.
Among the agreements, Abu Dhabi National Oil Company (ADNOC) will supply one million metric tonnes of liquefied natural gas (LNG) annually to the Indian Oil Corporation Ltd. At the same time, another pact was signed between ADNOC and India Strategic Petroleum Reserve Ltd (ISPRL) to explore further crude storage opportunities and renew their storage agreement. The Ministry noted that this has built on ADNOC’s involvement in crude storage at the Mangalore Cavern since 2018.
In a significant step for civil nuclear cooperation, Emirates Nuclear Energy Company (ENEC) and Nuclear Power Corporation of India Ltd (NPCIL) have agreed to collaborate on nuclear power plant operations and maintenance, sourcing nuclear goods and services, and exploring mutual investment opportunities. The agreement provides a framework for enhancing capacity building in the civil nuclear domain.
The fourth pact involves a production concession agreement for Abu Dhabi’s onshore block-one between Urja Bharat, a joint venture of Indian Oil Corporation Ltd and Bharat PetroResources Ltd, and ADNOC. This agreement marks the first operation by an Indian company in the UAE and entitles Urja Bharat to bring crude oil to India, thus contributing to the country’s energy security.
Additionally, the Gujarat government signed a memorandum of understanding (MoU) with the Abu Dhabi Developmental Holding Company to set up food parks in India. The ambitious project is scheduled to start in the second quarter of 2025.
The Crown Prince, who arrived in India on Sunday, will participate in an India-UAE business forum in Mumbai on Tuesday, where a soft launch will mark the beginning of work on the India-UAE virtual trade corridor.
During their discussions, Prime Minister Modi and Crown Prince Al Nahyan expressed satisfaction with the substantial progress made in recent years under the India-UAE Comprehensive Strategic Partnership. They also reviewed opportunities to deepen bilateral cooperation in all areas. The leaders acknowledged the positive impact of the Comprehensive Economic Partnership Agreement (CEPA) and the Bilateral Investment Treaty (BIT) on the two countries’ strong economic and commercial ties.
The Ministry of External Affairs spokesperson, Randhir Jaiswal, emphasised that the leaders discussed broadening the comprehensive strategic partnership across various sectors. A UAE readout also highlighted discussions on the historical bonds of friendship and cooperation between India and the UAE and perspectives on mutual interests.
Several strategic agreements were announced during the meeting under the UAE-India Comprehensive Economic Partnership Agreement, signed in February 2022, and the Local Currency Settlement System, signed in July 2023. These agreements aim to promote using the Indian rupee and UAE dirham for cross-border transactions.
In their discussions, the two leaders also addressed pressing global challenges, including the situation in Gaza. India-UAE relations have seen a significant upswing in recent years following Prime Minister Modi’s landmark visit to the UAE in August 2015, which elevated the bilateral relationship to a Comprehensive Strategic Partnership. With a strong Indian community of 3.5 million people the largest expatriate group in the UAE, the ties between the two countries continue to grow stronger.
Source: Business Standard