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Prime Minister Narendra Modi landed in the United Arab Emirates on Friday and secured deals on Liquefied Petroleum Gas (LPG) and Strategic Petroleum Reserves (SPR).

This comes at a critical juncture for the Indian economy, which has faced severe pressure following the blockade of the Strait of Hormuz, which handles 20% of global oil shipments.

LPG Deal

The first major agreement, signed between Indian Oil Corporation Limited (IOCL) and the Abu Dhabi National Oil Company (ADNOC), guarantees expanded, long-term LPG shipments. The UAE is already India's largest single source of LPG, currently fulfilling nearly 40% of the country's total demand.

With domestic fuel prices experiencing a marginal uptick back home, the newly signed pact acts as an essential supply cushion. 

Strategic Reserves Expanded

Under the second agreement, finalized between Indian Strategic Petroleum Reserves Limited (ISPRL) and ADNOC, the two nations will expand underground crude storage frameworks. This builds directly upon their 2018 operational partnership, where ADNOC stored over 5 million barrels of crude oil in ISPRL’s underground facility located in Mangaluru.

The expanded SPR treaty allows India to reinforce its commercial and strategic oil buffers against prolonged logistical disruptions in international waters.

OPEC Exit

The UAE recently exited the OPEC+ cartel framework to expand its independent production capacity to 5 million barrels per day by 2027. By bypassing broader cartel restrictions, New Delhi has successfully locked in direct, bilateral energy contracts.

Aside from crude oil, India remains the single largest buyer of Emirati Liquefied Natural Gas (LNG). These long-term supply contracts total 4.5 million metric tonnes per annum (MMTPA).