New Delhi, May 13 -- The government on Wednesday underlined Prime Minister Narendra Modi's upcoming visit to the United Arab Emirates on May 15 is indicative of the deep strategic significance of India-UAE relations in nearly ten years.

The visit will take place at a time of growing geo-political tension and instability in the global energy markets amid ongoing tensions in West Asia, disruptions in the area of maritime security around the Strait of Hormuz, and growing tensions for energy resources.

While travelling to the United Arab Emirates during a period of escalating geopolitical unrest and volatility in the world energy markets, due to persistent conflicts in West Asia, turmoil in maritime security in the Strait of Hormuz, and growing competition for energy resources.

As per Additional Secretary (Gulf) Aseem Mahajan, far from being just another diplomatic mission, the trip will serve to consolidate what has emerged into one of India's most significant alliances in the Gulf - an alliance that covers a wide range of areas from energy security to renewable energy and much more. Speaking to the media persons here in New Delhi, before the PM's impending visit, the senior foreign official underscored the pivotal role played by the UAE in India's energy strategy.

He stated that currently, the UAE is the fourth largest exporter of crude oil to India, contributing to almost 11 per cent of India's total crude oil imports. Considering the volatility and disruption in global supply chains due to conflicts and geopolitics, the initiative of India to engage in long-term energy deals with reliable partners like UAE becomes more critical.

In a very interesting turn of events, the PM's UAE visit is taking place following the UAE's decision to withdraw from the OPEC+ group. The decision is of interest to the world's top importers of energy resources, such as India, and analysts suggest that the changing dynamics in the sphere of energy may well lead to further agreements with Abu Dhabi on long-term cooperation. Furthermore, govt officials stressed that PM Modi's visit will carry a "very concrete agenda" involving such topics as trade, technology, energy cooperation and business.

The energy collaboration between the two countries has increased significantly in the recent past, especially in liquefied natural gas (LNG), Mahajan underlined. According to him, Indian state-owned companies and ADNOC have made long-term contracts for 4.5 million metric tons per annum (MMTPA) of LNG supply to India. The agreements have been reached between Indian energy giants IOCL, GAIL and HPCL. Also, IOCL and GAIL have signed a contract with ADNOC in February 2024 for a supply of one and 0.5 MMTPA of LNG, respectively, while IOCL signed another long-term contract with the company in September 2024.

Furthermore, during the UAE president's visit to India in January, this year, HPCL signed a ten-year deal with ADNOC Gas for 0.5 MMTPA of LNG starting from 2028. Through these contracts, India has emerged as the top importer of LNG from the UAE.

Similarly, the UAE continues to be the largest supplier of LPG to India, accounting for almost 40 per cent of the country's total demand for the commodity.

At the same time, the UAE has become the second-largest market for petroleum, oil and lubricant shipments from Indian refineries, reflecting the growing mutual dependency in energy trade. The Centre also emphasised that the partnership of India and the UAE, has transcended beyond the buyer-seller framework. India's leading private firms have invested in the exploration of energy resources in the UAE, indicating a paradigm shift in the nation's energy engagement abroad.

Published by HT Digital Content Services with permission from Millennium Post.