Daijiworld Media Network – New Delhi
New Delhi, May 15: Prime Minister Narendra Modi has embarked on a six-day diplomatic tour covering the United Arab Emirates, Netherlands, Sweden, Norway, and Italy, with the UAE marking the first stop of the high-level visit.
During his visit to the UAE, PM Modi will hold talks with President Sheikh Mohamed bin Zayed Al Nahyan. The discussions are expected to focus on strengthening bilateral relations, with special emphasis on energy cooperation, along with regional and global issues of shared concern.
Both leaders will also review progress under the India-UAE Comprehensive Strategic Partnership, which continues to be supported by strong political trust, robust economic engagement, cultural linkages, and growing people-to-people ties. Energy security is expected to remain a key priority during the talks.
Officials from the Ministry of External Affairs stated that energy remains a cornerstone of India-UAE relations. The UAE is currently India’s fourth-largest supplier of crude oil, meeting nearly 11 percent of the country’s requirements.
India has also secured long-term LNG contracts with Abu Dhabi National Oil Company Gas amounting to around 4.5 million metric tonnes per annum, making it the largest buyer of LNG from the UAE.
In addition, the UAE supplies about 40 percent of India’s liquefied petroleum gas imports and remains a significant market for Indian petroleum exports. Indian companies have also invested in key upstream oil assets in the UAE, including stakes in the Lower Zakum field and Abu Dhabi onshore blocks.
The partnership between the two countries is further expanding into strategic petroleum reserves, renewable energy projects, and possible electricity grid interconnections. The UAE is also a founding member of the Global Biofuels Alliance, reflecting increasing cooperation in clean energy initiatives.
According to reports, India and the UAE have moved beyond traditional oil trade to broader engagement in natural gas, renewable energy, and even civil nuclear cooperation.
Earlier this year, Hindustan Petroleum signed a 10-year LNG agreement with Abu Dhabi National Oil Company for 0.5 million tonnes annually from 2028, aimed at ensuring greater price stability and reducing dependence on volatile spot markets.
Renewable energy investments from UAE sovereign funds in India’s solar sector are also growing, while India’s SHANTI Act has opened new avenues for private participation in the nuclear energy sector, including potential collaboration on Small Modular Reactors.
Both nations are also exploring the use of local currencies, such as rupees and dirhams, for energy trade settlements, reducing reliance on the US dollar.
The visit is expected to further deepen the India-UAE Comprehensive Strategic Partnership, particularly in the areas of energy security, investment, and emerging technologies, at a time of evolving global geopolitical challenges.