India to Store Strategic Petroleum Reserves in UAE: 30 Million-Barrel Deal in the Works

India and the United Arab Emirates have agreed to deepen their energy cooperation.

With the UAE set to store up to 30 million barrels of crude oil in India’s Strategic Petroleum Reserve system, the Ministry of External Affairs (MEA) said on Friday following Prime Minister Narendra Modi’s visit to Abu Dhabi.

The agreement was reached during wide-ranging talks between Prime Minister Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan. Both leaders also underscored the importance of ensuring safe passage and uninterrupted navigation through the Strait of Hormuz amid growing geopolitical tensions in West Asia.

According to the MEA, the two sides “welcomed the conclusion of a Strategic Collaboration Agreement between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company to enhance UAE’s participation in India’s Strategic Petroleum Reserves to 30 million barrels.”

The initiative is expected to bolster India’s energy security at a time when global crude oil markets remain vulnerable to supply disruptions.

Both countries also agreed to explore the development of strategic gas storage facilities in India and welcomed a separate long-term arrangement between Indian Oil Corporation and ADNOC for sustained LPG supply.

Describing the UAE as a key partner in India’s energy security framework, the MEA said the two sides are working on “new initiatives for a comprehensive energy partnership” covering crude oil, liquefied natural gas (LNG), and liquefied petroleum gas (LPG).

Beyond energy cooperation, the visit also resulted in commitments of around USD 5 billion in UAE investments across sectors including banking, infrastructure, and financial services. New agreements were also announced in defence cooperation, maritime security, shipbuilding, and advanced computing.

Prime Minister Modi’s visit came at a time of heightened regional tensions and volatility in global energy markets. The MEA said the leaders also discussed regional stability, with India reiterating its condemnation of recent attacks on the UAE and expressing solidarity with its leadership and people.

With concerns over potential disruptions to key shipping routes such as the Strait of Hormuz, both sides reaffirmed the need to safeguard trade corridors and strengthen economic resilience through deeper bilateral cooperation.