PM Modi's UAE visit strengthens India's energy security amid rising Middle East tensions: Report
New Delhi, May 19
Prime Minister Narendra Modi's visit to the United Arab Emirates has assumed major strategic significance as India and the Gulf nation signed key energy agreements at a time of rising geopolitical tensions and volatile oil markets triggered by the US-Israel conflict with Iran.
The UAE visit marked the first leg of PM Modi's five-nation tour, which will also take him to the Netherlands, Sweden, Norway and Italy.
Analysts said the timing of the visit reflected India's effort to secure long-term energy supplies as uncertainty grows across the Middle East, according to South China Morning Post report.
The visit also came shortly after the UAE's landmark decision to exit Organisation of the Petroleum Exporting Countries, a move widely viewed as reshaping the Gulf's energy landscape.
As OPEC's sixth-largest producer, the UAE is now free from the cartel's production quota system, allowing it to increase output beyond its earlier ceiling of 4.8 million barrels per day.
India, which imports nearly one-tenth of its crude oil requirements from the UAE and is also its largest liquefied natural gas customer, is expected to benefit from the Gulf nation's increased production flexibility.
According to a government statement, India and the UAE signed a strategic collaboration agreement between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company (ADNOC), under which the UAE will raise crude oil supplies to India's strategic petroleum reserves to 30 million barrels.
Another agreement signed between state-run Indian Oil Corporation and ADNOC formalised long-term liquefied petroleum gas supply arrangements.
Both countries also agreed to explore the establishment of strategic gas reserves in India to strengthen long-term energy security.
The UAE additionally committed fresh investments worth $5 billion, underlining the rapidly expanding economic relationship between the two countries, which currently have bilateral trade valued at nearly $85 billion annually.
The agreements gained further significance amid continuing instability in the region.
Fresh drone strikes targeting the UAE and Saudi Arabia on Sunday, despite an ongoing ceasefire linked to the Iran conflict, highlighted the vulnerability of Gulf energy infrastructure.
Strategic experts described the India-UAE partnership as a practical step to shield India from future supply disruptions and price shocks in global energy markets.
— IANS
Reader Comments
The UAE exiting OPEC is a game-changer. India is now in a better position to negotiate prices. But we also need to invest more in renewable energy to reduce dependency on imports.
Good to see India diversifying its energy partners. The $5 billion investment is huge! But keeping strategic petroleum reserves is smart—price fluctuations hurt our economy badly.
While this is good news, we must not ignore that the UAE's decision to leave OPEC could destabilise the cartel further. But for India, it's a win-win! 😊
The drone strikes on UAE and Saudi Arabia show how volatile the region is. India is wise to lock in long-term deals. But we should also push for more domestic exploration—why rely so much on imports?
This is why Modi ji is a statesman! Balancing ties with Gulf nations while securing our energy future. The UAE-India partnership is rock solid. Jai Hind! 🇮🇳
I hope the benefits trickle down to common people. Fuel prices are still high in India—let's see if these agreements actually reduce our monthly expenses. Skeptical but hopeful.
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