UAE, India sign four key pacts in energy sector

Leaders underscored the need to explore new areas of untapped potential

Published: Tue 10 Sep 2024, 8:15 PM

By
Issac John

Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and India's Commerce Minister Piyush Goyal in Mumbai on Tuesday. — WAM

The UAE and India on Tuesday signed four major pacts that will facilitate crude oil storage, long-term supply of LNG and cooperation in the civil nuclear energy sector.

The agreements were inked as Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Prime Minister Narendra Modi held wide-ranging talks focusing on boosting overall strategic ties in New Delhi on Monday.

In their discussions, the two leaders underscored the need to explore new areas of untapped potential, particularly in nuclear energy, critical minerals, green hydrogen, artificial intelligence, and cutting-edge technologies, according to the Ministry of External Affairs (MEA)

An agreement for the long-term supply of one million metric tonnes of LNG (liquefied natural gas) per annum to the Indian Oil Corporation Ltd by Abu Dhabi National Oil Company (Adnoc) and another between Adnoc and India Strategic Petroleum Reserve Ltd (ISPRL) are among the four pacts, the MEA said.

Emirates Nuclear Energy Company and Nuclear Power Corporation of India Ltd also inked a pact that is expected to enhance cooperation in the operation and maintenance of nuclear power plants, the sourcing of nuclear goods and services from India. It will also provide a framework for exploring mutual investment opportunities and capacity building in the civil nuclear domain.

The fourth pact is the production concession agreement for Abu Dhabi onshore block-one between Urja Bharat and Adnoc.

“The visit of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to India marks another milestone in the ever-strengthening India-UAE relationship. The Comprehensive Economic Partnership Agreement (Cepa) has already laid a strong foundation for collaboration in key sectors such as trade, investment, energy, and technology. Building on this, the Crown Prince’s visit signals a renewed commitment to expanding into new and emerging areas, unlocking additional pathways for economic growth and mutual prosperity,” said Adeeb Ahamed, managing director of Lulu Financial Holdings, who was part of the delegation accompanying the Crown Prince.

A separate pact was inked between the Gujarat government and the Abu Dhabi Developmental Holding Company PJSC on setting up food parks in India.

The agreement for the long-term supply of LNG for 1 million metric tonnes per annum (MMTPA) is the third such contract signed in just over a year. Both IOCL and GAIL had previously signed long-term agreements for 1.2 MMTPA and 0.5 MMTPA, respectively, with Adnoc.

The MoU between Adnoc and ISPRL provides for exploring Adnoc’s participation in additional opportunities for crude storage in India and the renewal of their storage and management agreement on mutually acceptable terms and conditions, the MEA statement said. The MoU builds on Adnoc’s existing involvement in crude storage at the Mangalore Cavern of ISPRL since 2018.

The production concession agreement for Abu Dhabi Onshore Block one between Urja Bharat (a JV of IOCL and Bharat PetroResources Ltd) and Adnoc is the first for any Indian company operating in the UAE. The concession entitles Urja Bharat to bring crude oil to India, thus contributing towards the country’s energy security, the MEA said.

The MoU on food parks conveys ADQ’s expression of interest in developing Gundanpara in Bavla in Ahmedabad as a highly promising site for this ambitious project, with a view to commencing the project in the second quarter of 2025.

The Crown Prince, who arrived in India on Sunday, visited Mumbai on Tuesday and participated in an India-UAE Business Forum.

A soft launch on the commencement of work on the India-UAE virtual trade corridor took place in Mumbai, the MEA said.

In their talks, Modi and Sheikh Khalid expressed satisfaction over the substantial progress achieved in recent years in the India-UAE Comprehensive Strategic Partnership and discussed opportunities to further deepen the ties in all areas of bilateral cooperation, the MEA said.

“They acknowledged that the success of the Comprehensive Economic Partnership Agreement (Cepa) and the recent entry into force of the Bilateral Investment Treaty (BIT) will provide further impetus to the strong economic and commercial partnership between the two countries,” it said.

MEA spokesperson Randhir Jaiswal said Modi and the Abu Dhabi Crown Prince discussed the multifaceted relations between India and the UAE with an aim to broaden the comprehensive strategic partnership. Their meeting also featured discussions on the UAE and India’s historical bonds of friendship and cooperation across all key sectors, as well as the two countries’ perspectives on several topics of mutual interest.