ADNOC has signed strategic collaboration agreements with Indian energy partners to expand crude oil, LNG and LPG storage cooperation and deepen LPG supply ties with India.
The Abu Dhabi-based energy giant announced the agreements in the presence of UAE President Sheikh Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi, underscoring the growing strategic importance of the UAE-India energy corridor.
The first agreement, with Indian Strategic Petroleum Reserves Limited, covers potential cooperation across crude oil, LNG and LPG storage and strategic reserves. ADNOC said the deal includes the possibility of increasing its crude oil storage in India to as much as 30 million barrels, including existing storage at Mangalore and potential new storage opportunities at Vishakhapatnam and Chandikol.
The agreement also explores possible crude storage in Fujairah as part of India’s strategic petroleum reserve, along with LNG and LPG storage opportunities in India. ADNOC said the effort is aimed at strengthening energy security and improving supply-chain resilience amid a challenging global shipping environment.
A second agreement with Indian Oil Corporation will explore expanded LPG supply and trading opportunities, including through ADNOC Global Trading. The agreement builds on an existing LPG term contract between ADNOC and Indian Oil that has been in place since 2023 and could support a long-term LPG sale and purchase agreement.
The deals reinforce ADNOC’s role as a major supplier to India, one of the world’s fastest-growing energy markets. They also come as New Delhi seeks to strengthen strategic reserves and diversify supply routes while managing rising demand for crude, gas and petrochemical feedstocks.
The broader UAE-India relationship has expanded in recent years through a Comprehensive Strategic Partnership and the Comprehensive Economic Partnership Agreement, which entered into force in 2022. The two countries are targeting $200 billion in bilateral trade by 2032, with energy and infrastructure forming a central part of that relationship.
By Charles Kennedy for Oilprice.com
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