ADNOC deepens India energy supply ties

ADNOC has exchanged two strategic collaboration agreements with partners from India, widening Abu Dhabi’s role in crude storage, LPG supply and energy-security planning at a time of volatile shipping routes and rising fuel demand across Asia.

The agreements were announced in Abu Dhabi on 15 May 2026 during Prime Minister Narendra Modi’s visit to the UAE, in the presence of President Sheikh Mohamed bin Zayed Al Nahyan. They place ADNOC at the centre of a broader energy and investment package between the two countries, alongside cooperation in defence, infrastructure, maritime services and advanced computing.

One agreement with Indian Strategic Petroleum Reserves Limited will explore expanded crude oil, LNG and LPG storage, including the possibility of increasing ADNOC’s crude storage in India’s strategic petroleum reserve system to as much as 30 million barrels. The framework covers existing storage at Mangalore and possible participation in facilities at Visakhapatnam in Andhra Pradesh and Chandikhol in Odisha.

The arrangement also opens the door for crude stored in Fujairah to be counted as part of India’s strategic petroleum reserve, a move that would add geographic flexibility to emergency stockholding arrangements. Such a structure could help India secure access to barrels closer to global shipping lanes while allowing ADNOC to strengthen its role as both supplier and storage partner.

A second agreement with Indian Oil Corporation will examine expanded LPG supply and trading opportunities, including through ADNOC Global Trading. The plan builds on an existing LPG term contract between the companies that has been in place since 2023 and could lead to a long-term LPG sale and purchase agreement involving ADNOC Gas.

Dr Sultan Ahmed Al Jaber, ADNOC managing director and group chief executive, said India’s scale and growth trajectory made it “one of the defining energy markets of our time”. He said the agreements reinforced supply security, deepened strategic ties and underlined ADNOC’s role as a dependable partner in powering India’s long-term economic growth.

The accords come as India, the world’s third-largest oil consumer and importer, seeks to widen supply options and expand emergency reserves amid uncertainty in West Asian shipping lanes. The country has been trying to raise the resilience of its petroleum supply chain by adding storage capacity, diversifying crude sources and negotiating longer-term contracts for fuels used by households, transport networks and industry.

ADNOC already has a presence in India’s reserve system through stored crude at Mangalore. The proposed expansion to Visakhapatnam and Chandikhol would deepen that model, giving Abu Dhabi a stronger commercial position while supporting India’s ability to respond to supply disruptions. The inclusion of LNG and LPG storage also signals a wider approach that goes beyond crude oil, reflecting the country’s demand for cleaner-burning fuels and flexible imports.

LPG remains central to India’s household energy mix and industrial fuel use, making long-term supply arrangements commercially and politically significant. A deeper ADNOC–Indian Oil Corporation partnership would connect upstream production, trading, shipping and retail-facing fuel demand in one of Asia’s largest consumption markets.

The agreements also strengthen the energy pillar of the UAE–India Comprehensive Strategic Partnership. Bilateral economic ties have broadened since the Comprehensive Economic Partnership Agreement entered into force in 2022, with the two sides targeting $200 billion in trade by 2032. Energy has remained one of the most durable areas of cooperation, covering crude, LNG, LPG, refined products, petrochemicals and renewable investment.

ADNOC’s India strategy has widened over the past two years. ADNOC Gas signed a 10-year LNG supply agreement with Hindustan Petroleum Corporation Limited in January 2026 for 0.5 million tonnes a year, valued at about $3 billion. ADNOC has also pursued long-term LNG supply to Indian Oil Corporation from the Ruwais LNG project, which is being developed as a lower-carbon export facility with planned production capacity of 9.6 million tonnes a year.