UAE-India energy security partnership strengthened by new ADNOC agreements
The UAE has become a cornerstone of India’s energy security agenda, with the energy relationship deepening further.
The signing of two co-operation agreements between ADNOC and Indian companies will see the Abu Dhabi-based major seek future opportunities in crude oil, gas storage, and strategic reserves, in collaboration with the Indian Strategic Petroleum Reserves.
One agreement could raise ADNOC’s crude oil storage in India by up to 30 million barrels, using facilities in Mangalore and exploring options at Vishakhapatnam and Chandikol.
Storing millions of barrels of crude oil in India’s domestic petroleum reserves could give the country a critical buffer against future global supply chain disruptions.
The agreements, signed during a recent official UAE visit by Indian Prime Minister Narendra Modi, also examined the option of crude storage in the UAE port city of Fujairah as part of India’s strategic petroleum reserve, alongside storage opportunities for LNG and LPG in India.
ADNOC also has an agreement with Indian Oil Corporation for LPG supply and trading, including through ADNOC Global Trading, which builds on their existing 2023 LPG contract.
Growing existing ties
The strategic alliances advance bilateral collaboration in the energy sector and fortify the UAE-India bond, further strengthening their already robust energy relationship.
ADNOC’s partnerships with Indian companies meet growing energy demand, support economic growth, and diversify the energy mix.
These agreements boost energy security as global shipping faces challenges stemming from the Iran conflict and the closure of the Strait of Hormuz. They strengthen the resilience of UAE-India energy supply chains and enable ADNOC to play a greater role in India’s growth story and energy needs.
Mutual opportunities
The UAE is the country’s third-largest trading partner after the US and China, while India is its largest export destination and trading partner.
H.E. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO, commented that India’s scale and growth trajectory make it “one of the defining energy markets of our time”.
He said: “As demand accelerates alongside a rapidly expanding population, the strength of the UAE-India energy partnership becomes ever more critical.
“These agreements reinforce supply security, deepen our strategic ties, and underscore ADNOC’s role as a dependable and reliable partner in powering India’s long-term economic growth.”
Building on historic trade
The UAE region and India have a trading legacy dating back centuries. Their energy relationship formally began in the mid-1970s — shortly after the formation of the Emirates — with crude oil exports from Abu Dhabi.
The relationship expanded to a multidimensional partnership when the UAE-India Comprehensive Economic Partnership Agreement (CEPA) went into force on 1 May, 2022.
With both countries targeting $200 billion in trade by 2032, they have further strengthened bilateral economic ties, including in energy and defence. Government data shows trade activity increased 14.7% in 2025.
The UAE is expected to boost oil output following the 1 May announcement to leave OPEC, enabling greater freedom to increase production and supply to importers such as India, potentially at lower prices. The country already imports more than 85% of its crude requirements — about 11% of that, or up to 450,000 bpd — from the UAE.
Fuelling India’s growth
In January, the two countries also signed a $3 billion deal for India to buy LNG from the UAE.
New Delhi aims to raise natural gas's share of its energy mix to 15% by 2030, while ADNOC Gas has pledged to broaden its customer base and expand its presence in India and other key Asian growth markets.
The ADNOC subsidiary made a 10-year sales and purchase agreement (SPA) with Hindustan Petroleum Corporation Limited (HPCL), a unit of state-owned Oil & Natural Gas Corporation (ONGC).
This was announced during the January visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan to India’s Prime Minister. At the time, Dr Al Jaber and Vikas Kaushal, Chairman and Managing Director of HPCL, reiterated the importance of the growing relationship between ADNOC and its Indian partners and customers.
ADNOC Gas has signed LNG contracts and agreements totalling more than $20 billion with Indian energy firms, making India the UAE’s largest LNG customer.
By 2029, it will operate at least 15.6 mtpa of LNG, with 3.2 mtpa contracted to Indian firms.
ADNOC previously said: “As one of the world’s fastest-growing major economies and a key driver of global energy demand, India continues to be a strategic priority for ADNOC and sits at the centre of key global energy growth trends.”
