New Delhi: During the state visit of the President of the United Arab Emirates (UAE), Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, India and UAE have signed a long-term deal for the supply of Liquefied Natural Gas (LNG) and a Memorandum of Understanding (MoU) for co-operation in nuclear energy, along with three other pacts. A statement released by the government said that the two sides have inked a total of five agreements, four of which pertain to the energy sector.
According to the government, a crucial agreement signed between India and the UAE is a pact for long-term supply of LNG between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited (IOCL). “The agreement for long-term LNG supply is for 1 MMTPA annually and 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. These contracts have strengthened energy security in India by diversifying LNG sources,” said a press statement. Under the deal, ADNOC will supply LNG to IOC for 15 years from its Ruwais LNG project, said a statement released by UAE’s government media.
Another MoU has been signed between ADNOC and India Strategic Petroleum Reserve Limited (ISPRL). “The MoU between ADNOC and ISPRL, inter alia, 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. This MoU builds on ADNOC’s existing involvement in crude storage at the Mangalore Cavern of ISPRL since 2018,” said the government.
In addition, a Production Concession Agreement has been signed between Urja Bharat and ADNOC for Abu Dhabi Onshore Block 1. “The Production Concession Agreement for Abu Dhabi Onshore Block 1 between Urja Bharat (a JV of IOCL and Bharat Petro resources Ltd) and ADNOC is the first one 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 press statement said.
Another important agreement in the energy sector has been signed between Nuclear Power Corporation of India Limited (NPCIL) and Emirates Nuclear Energy Corporation (ENEC). “The MoU on Nuclear Cooperation is expected to enhance cooperation in the operation and maintenance of nuclear power plants, sourcing of nuclear goods and services from India, exploring mutual investment opportunities and capacity building,” said the statement.
Earlier in the day, the UAE President held bilateral discussions with Prime Minister Narendra Modi. “The two leaders expressed satisfaction over the substantial progress achieved in recent years in the India-UAE Comprehensive Strategic Partnership and discussed opportunities to further widen and deepen the partnership in all areas of bilateral cooperation. 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. They also underscored the need to explore new areas of untapped potential, particularly in nuclear energy, critical minerals and cutting-edge technologies,” said the statement.
The fifth MoU was signed between the government of Gujarat and Abu Dhabi Developmental Holding Company PJSC (ADQ) on food parks development in India. “The MoU on Food Parks conveys ADQ’s expression of interest in developing Gundanpara, Bavla, Ahmedabad as sites for this ambitious project, with plans to commence the Food Park project in Q2 2025. The government of Gujarat shall facilitate ADQ and AD Ports, to obtain detailed information regarding the site and assist in obtaining necessary permissions,” said the statement.
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