India and the United Arab Emirates signed a $3 billion liquefied natural gas supply agreement on Monday, reinforcing energy cooperation as leaders from both countries held talks to deepen trade and defence relations. Moreover, the deal positions the UAE as a key long-term energy partner for India.
The agreement was concluded during a brief two-hour visit to India by Sheikh Mohammed bin Zayed Al Nahyan, who met with Prime Minister Narendra Modi. Additionally, both sides pledged to double bilateral trade to $200 billion within six years, underlining the growing economic momentum between the two economies.
ADNOC Gas secures long-term supply contract
Under the agreement, ADNOC Gas will supply 0.5 million metric tonnes of LNG annually to Hindustan Petroleum Corp for a period of 10 years. As a result, the deal adds to ADNOC Gas’ expanding footprint in the Indian energy market.
ADNOC Gas said the agreement brings the total value of its contracts with India to over $20 billion.
“India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy,” the company said.
Trade and defence cooperation broaden
India remains the UAE’s third-largest trading partner. Meanwhile, Sheikh Mohammed was accompanied by a senior delegation that included defence and foreign ministers, reflecting the strategic importance of the visit.
Strategic defence dialogue outlined
Both sides signed a letter of intent to work towards forming a strategic defence partnership, India’s Foreign Secretary Vikram Misri told reporters. However, Misri said the move does not signal involvement in regional conflicts.
“Our involvement on the defence and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region,” he said.
