India, Abu Dhabi ink long term LNG supply deal

Four pacts for the energy sector were signed.

In a major boost to their energy ties, India and the UAE signed a long-term liquefied natural gas (LNG) supply agreement between the Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited (IOCL) during a recent meeting between Prime Minister Narendra Modi and Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.

The Ministry of External Affairs said that this was India’s third long-term LNG supply agreement with ADNOC, this time for one million metric tonnes per annum (MMTPA). This follows previous agreements with IOCL and Gas Authority Of India Ltd. for 1.2 MMTPA and 0.5 MMTPA, respectively. 

In addition to the LNG agreement, other energy deals were also signed by the leaders, including the memorandum of understanding (MoU) between India's Nuclear Power Corporation and the UAE's Emirates Nuclear Energy Corporation. This pact is expected to boost cooperation in nuclear power plant operations, maintenance, sourcing, investment, and capacity building.

Another MoU was sealed between ADNOC and India Strategic Petroleum Reserve Limited (ISPRL) for the former’s participation in additional opportunities for crude storage in India and the renewal of their storage and management agreement on mutually acceptable terms and conditions. 

The last energy agreement signed by the leaders was the production concession for Abu Dhabi Onshore Block 1 between Urja Bharat and ADNOC. The concession entitles Urja Bharat to bring crude oil to India, boosting the country’s energy security.