India and UAE sign strategic agreements on LNG, nuclear energy and trade
- Liquefied natural gas (LNG) deals
- Civil nuclear cooperation
- Strategic petroleum reserve agreements
- Development of food and agriculture park in Gundanpara
- Investment and economic partnerships
Indian Prime Minister Narendra Modi and United Arab Emirates (UAE) Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan signed a memorandum of understanding (MoU) for the supply of liquefied natural gas (LNG) and civil nuclear cooperation in the Indian capital New Delhi.
The meetings also included the UAE's participation in India's strategic petroleum reserves and the development and construction of a food park in the Gujarat region. Other issues discussed included boosting the use of artificial intelligences and the extraction of critical minerals.
During the visit, the Crown Prince participated in the India-EAU Business Forum in Mumbai, and the launch of preliminary work on the new India-EAU Virtual Trade Corridor (VTC) and the MAITRI interface to facilitate VTC. He also met with the President of India, Droupadi Murmu, who thanked the Emirati authorities for hosting more than 3.5 million Indian nationals.
Liquefied natural gas (LNG) deals
The United Arab Emirates' Abu Dhabi National Oil Company (ADNOC), one of the largest in the oil sector, agreed with the Indian Oil Corporation Limited (IOCL) to supply more than one million metric tons per year of liquefied natural gas (LNG) for the next 15 years.
This is part of the Ruwais low carbon gas project funded by ADNOC. The Ruwais scheme will be the first LNG export in the Middle East and Africa region to run on clean energy. The plant is expected to start production in 2028.
Each station will produce 4.8 million tonnes per year of LNG, which will more than double ADNOC's LNG capacity to 15 million tonnes per year.
Among the project's targets, it is expected to double production, which would help meet global demand, particularly from India, the world's most populous country with more than 1.5 billion people. The facility is expected to produce enough in a year to supply the City of London for more than two years. This puts the company in competition with Qatar, one of the world's largest exporters of liquefied natural gas, and Saudi Arabia.
Civil nuclear cooperation
In nuclear energy, the two powers signed a memorandum of understanding (MoU) to enhance cooperation in nuclear power plant development, energy procurement and exploration of mutual investment opportunities.
The agreement signed by Nuclear Power Corporation of India Limited (NPCIL) and the Emirates Nuclear Energy Corporation (ENEC) coincides with the announcement of the commercial plant of Unit 4 of the Barakah nuclear power plant.
This new plant will have the capacity to produce 25% of the United Arab Emirates' energy needs, or the total energy consumed in New Zealand. 85% of the clean energy certificates administered by ENEC operate with Barakah.
Producing more than 40 terawatt hours of clean electricity, the plant has contributed to the highest levels of clean energy use in the country in 13 years.
Strategic petroleum reserve agreements
In crude oil, the agreement between the giant India Strategic Petroleum Reserve Limited (ISPRL) and ADNOC will make it easier for the UAE government to increase its participation in India's oil storage drive, while keeping its existing contracts renewed.
The management of crude oil reserves is becoming increasingly important. In a world increasingly investing in clean energy, maintaining hydrocarbon reserves is crucial for electricity production worldwide.
The Abu Dhabi Onshore Block 1 concession will enable ADNOC and Urja Bharat, a joint venture of IOCL and Bharat Petro Resources Ltd, to transport crude oil to India, contributing to the country's energy security for the next 15 years.
Development of food and agriculture park in Gundanpara
ADQ Holding Company, the second largest sovereign wealth fund of the Government of Abu Dhabi, has signed a memorandum of understanding with the Indian Ministry of Food Processing to establish an agricultural and food processing industrial complex in Gujarat using advanced food processing technologies.
Earlier this year, it was reported that the Abu Dhabi Investment Authority, the UAE's largest sovereign wealth fund was looking to set up a 4-5 billion dollar fund to invest in India through the tax-neutral financing centre in Gujarat, Modi's birthplace.
Investment and economic partnerships
Economic and trade relations between the two powers are at record highs. Between 2019-2023 alone, Emirati investment in India reached 16.2 billion dollars, while India invested over 7.76 billion dollars in the UAE. As for non-oil trade, non-oil trade in 2023 reached 53.4 billion dollars, 2 billion dollars more than in the previous year.
Following the signing of the agreements, the Emirati government plans to invest around 50 billion more in the coming years. According to the Indian Ministry of Foreign Affairs, these investments are part of maintaining the Barakah plant and strengthening relations.
The Indian community in the UAE is one of the largest and most representative in the world. With more than 3.5 million people living in the UAE, the community represents 35% of the country's population, which is more than enough for relations to be maintained and further developed in the coming years.