Prime Minister Narendra Modi visited the United Arab Emirates (UAE) on Friday and secured major strategic and economic gains for India. During the visit, both countries signed key agreements to expand cooperation in energy security and petroleum storage.

The deals aim to strengthen India’s fuel security and improve long-term energy planning at a time of rising tensions in West Asia.

UAE May Store 30 Million Barrels of Oil in India

Under the new understanding, the UAE may store up to 30 million barrels of ADNOC crude oil in India’s Strategic Petroleum Reserve. The agreement includes ADNOC’s participation in the oil storage facility at Visakhapatnam in Andhra Pradesh. It also covers proposed petroleum reserve projects in Chandikol, Odisha.

India and the UAE also discussed the possibility of storing crude oil in Fujairah, UAE, as part of India’s strategic petroleum reserve network. In addition, both sides explored cooperation in Liquid Natural Gas (LNG) and Liquid Petroleum Gas (LPG) storage facilities in India.

India, UAE Sign LPG Supply Agreement

India and the UAE signed a memorandum of understanding on Strategic Petroleum Reserves. They also finalised an agreement for the supply of Liquefied Petroleum Gas (LPG).

The agreements are expected to support India’s long-term energy security strategy. They will also help India diversify its fuel supply sources and reduce risks linked to global energy disruptions.

Rising West Asia Tensions Raise Energy Concerns

The oil storage deal comes at a time of growing geopolitical uncertainty in West Asia.

The ongoing Iran-US-Israel conflict has increased concerns over possible disruptions in global energy supplies. Against this backdrop, India is focusing on securing stable fuel reserves and strengthening partnerships with major energy-producing countries like the UAE.

UAE Speeds Up Major Oil Pipeline Project

Alongside the agreements with India, the UAE announced plans to speed up work on a major oil pipeline project. According to a Reuters report, Abu Dhabi Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan directed the Abu Dhabi National Oil Company (ADNOC) to fast-track the West-East Pipeline project during an executive committee meeting on Friday.

The pipeline project aims to double the UAE’s crude oil export capacity through Fujairah. The project will also help the UAE bypass the Strait of Hormuz, which remains sensitive due to rising regional tensions linked to the Iran-US-Israel war.