India and UAE sign 15-year LNG agreement, Nuclear MoU, and AI deal
On Monday, India and the United Arab Emirates (UAE) announced several significant agreements aimed at deepening their strategic relationship. These deals include long-term arrangements for the supply of liquefied natural gas (LNG) and partnerships in civil nuclear energy. Prime Minister Narendra Modi and Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan of Abu Dhabi also explored new areas of collaboration, including artificial intelligence and critical minerals.
The agreement between the Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited (IOCL) sets up a 15-year LNG supply deal. This contract, which will provide one million metric tonnes per year from ADNOC’s Ruwais gas project, is India's third major energy security agreement in recent months, following similar deals with ADNOC by IOCL and GAIL.
In the nuclear sector, a new memorandum of understanding (MoU) was signed between Nuclear Power Corporation of India Limited (NNPCIL) and Emirates Nuclear Energy Corporation (ENEC). This MoU aims to enhance cooperation in the operation and maintenance of nuclear power plants and explore investment opportunities, promoting knowledge sharing in nuclear energy.
Another agreement between ADNOC and India Strategic Petroleum Reserve Limited (ISPRL) will increase the UAE's involvement in India's strategic petroleum reserves. This builds on ADNOC's previous involvement in crude storage at ISPRL's Mangalore facility, which has been in place since 2018. The reserves, which are crucial for handling global supply disruptions, currently hold 5.86 million barrels of crude.
A new production concession agreement allows Urja Bharat, a joint venture of IOCL and Bharat Petro Resources Ltd, to bring crude oil from Abu Dhabi Onshore Block 1 to India. This is the first such agreement involving an Indian company in the UAE and will enhance India's energy security.
Additionally, the Gujarat government and Abu Dhabi Developmental Holding Company (ADQ) have agreed to develop a food and agriculture park in Gujarat, set to launch by mid-2025.
During Sheikh Khaled’s visit to Mumbai, the soft launch of the India-UAE virtual trade corridor and the MAITRI interface will take place. This initiative will be part of the India–Middle East–Europe Economic Corridor. Sheikh Khaled will also participate in the India-UAE Business Forum to discuss future opportunities for collaboration.
Prime Minister Modi and Crown Prince Khaled expressed their satisfaction with the progress in their bilateral relationship and discussed ways to further expand their partnership. Sheikh Khaled, who is visiting India for the first time since becoming crown prince, also met President Droupadi Murmu, who expressed appreciation for the UAE’s hospitality towards the large Indian community residing there.
