India, UAE Sign Pacts on LPG and Strategic Oil Reserves

India and the United Arab Emirates signed a Memorandum of Understanding on 15 May 2026 for cooperation in strategic petroleum reserves and for increased liquefied petroleum gas supplies to India. The agreements were signed during the visit of Prime Minister Narendra Modi to Abu Dhabi, where bilateral talks were held with UAE President Sheikh Mohamed bin Zayed Al Nahyan.

India-UAE Energy Cooperation

The UAE is India’s largest supplier of liquefied petroleum gas and meets about 40% of India’s LPG requirement. The UAE was also India’s fourth-largest source of crude oil in the previous year, with a share of nearly 11% of India’s crude oil imports. India and the UAE had earlier partnered on strategic petroleum reserves in 2018, when Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company agreed on storage of more than 5 million barrels of crude oil at the Mangaluru facility in Karnataka.

Strategic Petroleum Reserves and Energy Security

Strategic petroleum reserves are emergency crude oil stockpiles maintained to support supply continuity during disruptions in international oil markets. India maintains strategic petroleum reserve facilities through Indian Strategic Petroleum Reserves Limited, a company under the Ministry of Petroleum and Natural Gas. The new pact is linked with fuel supply stability during volatility in global energy markets and with maritime risks in the Gulf region, including the Strait of Hormuz, which is a key oil transit route connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.

Other Agreements During the Visit

India and the UAE also signed a Framework Agreement for a Strategic Defence Partnership and an MoU for establishing a Ship Repair Cluster at Vadinar in Gujarat. The UAE announced investments worth US5 billion in Indian infrastructure projects, RBL Bank, and Samman Capital. In January 2026, India and the UAE signed a US3 billion liquefied natural gas purchase agreement. India became the UAE’s largest LNG customer under existing long-term LNG supply contracts of about 4.5 million metric tonnes per annum.

Important Facts for Exams

• Liquefied petroleum gas is commonly used for cooking, heating, and industrial applications.
• Strategic petroleum reserves are part of a country’s energy security architecture.
• The Strait of Hormuz is one of the world’s most important oil transit chokepoints.
• Indian Strategic Petroleum Reserves Limited manages India’s strategic crude oil storage facilities.