New Delhi, May 19 (IANS). Prime Minister Narendra Modi’s visit to the United Arab Emirates (UAE) was very important strategically. During this period, many important agreements in the energy sector were signed between India and UAE at a time when there is geopolitical tension in West Asia and instability in the oil market.
According to experts, this visit is part of India’s strategy under which it wants to ensure its energy security in the long run. This step became even more important in view of the increasing uncertainty in the Middle East.
This visit was the first leg of Prime Minister Narendra Modi’s five-nation tour. After this he went on a tour of Netherlands, Sweden, Norway and Italy.
The timing of this visit is also considered important because recently the UAE had decided to withdraw from the Organization of Petroleum Exporting Countries (OPEC). With this, UAE can now produce more oil by going beyond its production limit.
India imports about one-tenth of its crude oil needs from the UAE and is also the UAE’s largest LNG customer. In such a situation, increased production is considered beneficial for India.
According to the information given by the government, a strategic agreement has been signed between India and UAE between Indian Strategic Petroleum Reserve Limited and Abu Dhabi National Oil Company (ADNOC), under which UAE will provide 30 million barrels of crude oil for India’s strategic oil reserves.
Apart from this, an agreement has also been signed between Indian Oil Corporation and ADNOC for long term supply of LPG.
Both countries have also agreed on the possibility of establishing strategic gas reserves in India, so that energy security can be further strengthened in the future.
UAE has also committed to new investment of $5 billion in India. At present there is annual trade of about 85 billion dollars between the two countries.
These agreements have come at a time when instability continues in the region. News of drone attacks in the UAE and Saudi Arabia on Sunday have again highlighted the sensitivity of the Gulf region’s energy infrastructure.
Experts believe that the India-UAE partnership is a practical step towards protecting India from potential supply shortages and price fluctuations in the global energy market.
–IANS
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