India-UAE energy ties deepen as ADNOC explores new LPG supply and crude storage deals

Rashmi Pandey — Fri, 15 May 2026 12:18:58 +0000

Abu Dhabi National Oil Company (ADNOC) has announced a major expansion of its energy cooperation with India, including discussions on LNG and LPG storage opportunities, expanded crude oil reserves and long-term fuel supply partnerships with Indian companies.

The development comes as India and the United Arab Emirates deepen strategic energy cooperation amid rising geopolitical tensions in West Asia and growing concerns over global energy security. ADNOC confirmed that it has signed a strategic collaboration agreement with Indian Oil Corporation to explore additional LPG supply and trading opportunities.

According to ADNOC’s announcement, discussions are underway regarding new LNG and LPG storage infrastructure in India as part of efforts to strengthen long-term energy supply chains between the two countries. The proposed cooperation is also expected to support India’s rapidly growing fuel demand and strategic petroleum reserve expansion plans.

ADNOC stated that the latest oil agreement between India and the UAE could potentially increase the company’s crude oil storage capacity in India to nearly 30 million barrels. The storage expansion is being viewed as a major step toward strengthening India’s emergency energy reserves and ensuring supply stability during periods of global market disruption.

Officials also confirmed that discussions are taking place on a broader oil arrangement involving possible crude oil storage facilities in Fujairah for India’s Strategic Petroleum Reserve programme. Fujairah has emerged as one of the world’s key oil storage and bunkering hubs due to its strategic location outside the Strait of Hormuz.

The agreements and ongoing negotiations follow Prime Minister Narendra Modi’s recent visit to the UAE, during which both countries signed multiple strategic and energy-related agreements, including cooperation on strategic petroleum reserves and long-term LPG supply arrangements.

India has significantly expanded energy ties with Gulf nations over the past decade as it seeks to secure stable crude oil, gas and LPG supplies amid volatile global markets and geopolitical uncertainty. The UAE remains one of India’s largest energy partners and a major supplier of crude oil and petroleum products.

Analysts say the latest ADNOC initiatives reflect the growing strategic importance of India in global energy markets as well as the UAE’s ambition to expand its downstream and storage presence in Asia. The proposed storage agreements could also help India improve supply resilience in the event of disruptions linked to the Strait of Hormuz or wider regional conflicts.

The India-UAE energy partnership has rapidly evolved beyond crude oil imports to include petrochemicals, LNG, logistics, renewable energy and strategic infrastructure investments. Officials from both sides indicated that further announcements regarding storage capacity, supply agreements and investment projects could emerge in the coming months.

OilStorage | Business Upturn

India-UAE energy ties deepen as ADNOC explores new LPG supply and crude storage deals