New Delhi explores deeper energy cooperation with Abu Dhabi amid geopolitical uncertainty and disruptions to global shipping
India is exploring a larger role for the United Arab Emirates in supplying liquefied petroleum gas (LPG) and liquefied natural gas (LNG), while the two countries are studying the feasibility of subsea pipelines to transport and store gas in India, Commerce and Industry Minister Piyush Goyal said on Monday.
Speaking after the 14th meeting of the India-UAE High Level Joint Task Force on Investments, Goyal said the two countries were also working to expand India’s strategic petroleum reserves. The discussions come against the backdrop of continuing geopolitical uncertainty and disruptions affecting international energy and shipping routes.
Goyal said a study is examining whether underwater pipelines could be used to bring gas into India and support storage, as part of efforts to strengthen the country’s energy resilience and security. The proposal remains at the study stage, with no final decision on construction announced.
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The UAE’s potential expansion as an energy supplier comes as India seeks to diversify its sources of imported fuel
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Recent shipping data cited by Business Standard showed the UAE had become India’s largest LPG supplier in September, with supplies rising sharply compared with the previous month
Energy cooperation is part of a broader effort to deepen India-UAE economic ties. Goyal said the UAE was looking at investment opportunities in sectors including space, start-ups, ports and shipbuilding, as well as India’s stock market. The two sides are working towards increasing UAE investment in India to $100 billion from about $25 billion currently.
India and the UAE are also expanding the use of the rupee and dirham in bilateral trade. Goyal said local-currency transactions had reached double-digit levels, while the UAE’s use of India’s UPI payment system was growing.
The countries have further agreed to strengthen cooperation in maritime industries and establish a formal working group on civil aviation.
