Energy cooperation takes center stage in India-UAE bilateral relations
New Delhi: The official two-day visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi, commenced on Monday, and marks a significant milestone in the India-UAE Comprehensive Strategic Partnership. This visit, at the invitation of Prime Minister Narendra Modi, underscores the commitment of both nations to further widen and deepen their bilateral cooperation in all areas, with a particular focus on energy cooperation.
During the visit, several key pacts were signed, setting the stage for enhanced cooperation in traditional and new areas of energy cooperation. One of the significant agreements was the long-term LNG supply agreement between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Ltd. This agreement involves the long-term supply of LNG at 1 MMTPA annually, marking the third such contract signed in just over a year. Following previous agreements with IOCL and GAIL, these contracts are crucial for India’s energy security, as they diversify its LNG sources and strengthen its energy infrastructure.
Another important development was the MoU between ADNOC and India Strategic Petroleum Reserve Limited (ISPRL). This MoU provides for exploring ADNOC’s participation in additional opportunities for crude storage in India and the renewal of their storage and management agreement on mutually acceptable terms and conditions. Building on ADNOC’s existing involvement in crude storage at the Mangalore Cavern of ISPRL since 2018, this MoU signifies the deepening of energy ties between the two countries.
Furthermore, the production concession agreement for Abu Dhabi Onshore Block 1 between Urja Bharat (a joint venture of IOCL and Bharat Petro Resources Ltd) and ADNOC is a historic first for any Indian company operating in the UAE. It entitles Urja Bharat to bring crude oil to India, contributing significantly to the country’s energy security.
Several other MoUs and agreements were also signed, including one on nuclear cooperation between Nuclear Power Corporation of India Limited (NNPCIL) and Emirates Nuclear Energy Corporation (ENEC). This strategic partnership in nuclear energy is expected to enhance cooperation in the operation and maintenance of nuclear power plants, sourcing nuclear goods and services from India, exploring mutual investment opportunities, and capacity building. It is a testament to the trust and confidence both nations have in each other’s capabilities and commitment to safety and security in this critical sector.
These agreements and MoUs are not just symbolic gestures but represent concrete steps towards a more integrated energy partnership between India and the UAE. They reflect a shared vision of leveraging each other’s strengths to ensure sustainable and secure energy supplies. The success of the Comprehensive Economic Partnership Agreement (CEPA) and the recent entry into force of the Bilateral Investment Treaty (BIT) are expected to provide further impetus to this strong economic and commercial partnership.
The focus on energy cooperation is a critical component of the broader India-UAE Comprehensive Strategic Partnership. It aligns with both nations’ strategic interests in ensuring energy security, promoting sustainable development, and exploring new areas of untapped potential, such as nuclear energy, critical minerals, and cutting-edge technologies.
As the world navigates the complexities of the global energy landscape, the India-UAE energy partnership stands out as a model of collaboration, trust, and mutual benefit. The agreements signed during the Crown Prince’s visit are a testament to the commitment of both nations to forge a path of sustainable growth and development, anchored in robust energy cooperation. The Crown Prince of Abu Dhabi is on an official visit to India from September 9-10, 2024.
