Modi’s UAE Visit Highlights India’s Growing Focus on Energy Security

The visit by Prime Minister Narendra Modi to the United Arab Emirates (UAE) next week is expected to strengthen India’s efforts to secure its long-term energy needs amid continuing geopolitical uncertainty in West Asia. The visit, scheduled for next Friday, marks the beginning of PM Modi’s five-nation tour from May 15 to 20, taking place against the backdrop of disruptions in global energy markets due to the ongoing tensions involving Iran, the United States, and Israel.

According to sources familiar with the discussions, energy security is expected to remain the central focus of the talks. India is likely to explore the possibility of increasing crude oil and liquefied natural gas imports from the UAE, along with expanding cooperation in strategic petroleum reserves.

Discussion Around Energy Security

India is the world’s third-largest importer of crude oil and depends heavily on external sources to meet its energy requirements. This dependence has made the country vulnerable to geopolitical disruptions, particularly in West Asia, from where India imports a major share of its oil.

The ongoing tensions in the region have increased concerns over supply chain disruptions, maritime shipping routes, and rising crude oil prices. Amid this uncertainty, the UAE has emerged as one of India’s most reliable energy partners.

PM Modi is expected to meet UAE President Mohamed bin Zayed Al Nahyan to discuss a range of bilateral issues. However, according to India’s Ministry of External Affairs, energy security is expected to dominate the agenda. Long-term crude oil agreements and liquefied natural gas supplies are likely to be among the major topics of discussion.

India-UAE Energy Relations Continue to Expand

The UAE has steadily become one of India’s leading suppliers of crude oil and natural gas. Last month, India signed a $3 billion liquefied natural gas agreement with the Gulf nation, reflecting the growing strength of energy ties between the two countries.

Experts believe the visit could pave the way for additional agreements that would help India secure more stable fuel supplies amid volatile global market conditions.

With the UAE increasing its energy production capacity, its importance as a long-term supplier to major economies such as India has grown further. For New Delhi, ensuring stable energy supplies has become increasingly important as elevated oil prices continue to influence inflation and economic stability.

Strategic Petroleum Reserves to Remain a Key Focus

Another major issue likely to feature prominently during the discussions is India’s plan to expand its strategic petroleum reserves.

Currently, India operates three petroleum reserve facilities with a combined capacity of 5.33 million metric tonnes, intended for use during supply disruptions or emergencies. The country is also planning two additional reserve facilities with a combined capacity of 6.5 million metric tonnes.

The UAE is already cooperating with India in this area through Abu Dhabi National Oil Company (ADNOC), which has leased 1.5 million metric tonnes of storage capacity in India.

During the visit, PM Modi is expected to encourage greater UAE participation in future strategic reserve projects, either through additional investments or expanded storage arrangements.

Broader Strategic Partnership

While energy security remains a key priority, the visit also reflects the broader strengthening of India-UAE relations.

Annual bilateral trade between India and the UAE currently exceeds USD 50 billion. Under the Comprehensive Economic Partnership Agreement, both countries are aiming to increase bilateral trade to USD 200 billion over the next six years.

Another significant aspect of the relationship is the large Indian diaspora in the UAE, with more than 4.5 million Indians currently residing there.

PM Modi’s 2015 visit to the UAE was the first by an Indian Prime Minister in 34 years. The upcoming trip will mark his eighth visit to the country.

Prime Minister Modi’s visit to the UAE comes at a crucial time for India’s energy strategy. With ongoing geopolitical tensions continuing to affect global energy markets and supply chains, securing stable and reliable energy partnerships has become increasingly important for India.

The visit is expected to further strengthen energy cooperation between the two countries while reinforcing the broader strategic partnership between India and the UAE.