India and UAE Forge Major Energy Partnership with $2.5 Billion LNG Deal
The United Arab Emirates announced a significant energy partnership with India on Monday. The two nations sealed a long-term liquefied natural gas agreement valued at more than $2.5 billion.
Details of the Landmark Agreement
ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company, signed the deal with Indian oil giant Hindustan Petroleum Corporation Ltd. Under this new contract, ADNOC Gas commits to supplying 500,000 tonnes of LNG to India every year for the next ten years.
This agreement pushes the total value of contracts ADNOC supports and operates beyond $20 billion. The company stated that India will become its largest natural gas customer as a result of this deal.
Starting from 2029, Indian firms are expected to take just over 20% of ADNOC Gas's total annual output. The company produces 15.6 million tonnes of LNG each year.
Strategic Context and Broader Cooperation
The two countries concluded this agreement during a visit by Emirati President Mohamed bin Zayed Al Nahyan to New Delhi. He held talks with Prime Minister Narendra Modi during this diplomatic engagement.
In a joint statement, both leaders welcomed the steady expansion of trade between their countries since a 2022 pact. They pledged to double bilateral trade to $200 billion by 2032.
Prime Minister Modi's office released a separate statement highlighting additional areas of cooperation. The two nations agreed to work toward building a strategic defence partnership. They plan to deepen cooperation in several critical areas including special operations, interoperability, cyber space, and counter terrorism efforts.
This energy deal represents a substantial step in strengthening the economic and strategic relationship between India and the UAE. The agreement ensures a stable energy supply for India while expanding market access for Emirati energy exports.
