This stop in the UAE marks the beginning of a five-nation tour from May 15 to 20, driven by India’s status as the world’s third-largest energy importer, which is looking to stabilize supplies disrupted by the US-Israeli conflict involving Iran. The recent departure of the UAE from OPEC is anticipated to enhance its production, aiding countries such as India.
Government heads visiting the UAE have become uncommon since the outbreak of the war and Iran’s retaliatory actions against the country.
The UAE stands as one of India’s primary sources for crude oil and natural gas. Earlier this year, India inked a $3 billion agreement to import liquefied natural gas from the UAE.
Modi’s agenda includes a meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan to address several topics, especially energy collaboration, as noted by India’s foreign ministry. The UAE ranks as India’s third-largest trading partner and houses over 4.5 million Indians.
The three sources indicated that Modi is likely to request assistance with long-term supplies of cooking gas and crude oil, alongside the expansion of India’s strategic reserves. They did not provide further details and opted to remain anonymous due to the sensitivity surrounding potential government-to-government discussions.
India currently operates three strategic reserve facilities with a collective capacity of 5.33 million metric tons (MMT) and plans to establish two additional facilities with an extra capacity of 6.5 MMT. Approximately 1.5 MMT of the existing capacity has been leased to Abu Dhabi National Oil Co (ADNOC).
No response was received from India’s oil and gas ministry regarding a comment request. ADNOC also refrained from commenting prior to the visit, while the UAE foreign ministry did not reply to an email request for input.
In 2015, Modi emerged as the first Indian prime minister to visit the UAE in 34 years. This forthcoming trip will be his eighth.
The nations aspire to elevate bilateral trade to $200 billion within six years and establish a defense partnership. Meanwhile, India’s competitor Pakistan has secured a defense agreement with Saudi Arabia, amidst a growing rift between Saudi Arabia and the UAE.
Following his UAE visit, Modi will proceed to the Netherlands, Sweden, Norway, and Italy.
