India and the UAE on Friday signed major agreements on LPG supply and strategic petroleum reserves during Prime Minister Narendra Modi’s visit to Abu Dhabi, with the aim of protecting India from fuel supply disruptions caused by the ongoing US-Iran conflict and rising crude oil prices.

The two key MoUs focus on securing long-term LPG supplies for India and strengthening the country’s strategic oil reserves. Officials said energy security was the main priority during Modi’s short UAE stopover as tensions in West Asia continue to create uncertainty in global oil markets.

India is the world’s third-largest energy importer and depends heavily on crude oil imports. The UAE is already one of India’s biggest suppliers of crude oil and natural gas. In January this year, India signed a USD 3 billion LNG deal with the Gulf nation, further deepening energy ties.

At present, India has three strategic petroleum reserve facilities with a total capacity of 5.33 million metric tonnes. The government is planning to add two more reserves with an additional capacity of 6.5 million metric tonnes. Around 1.5 million metric tonnes of the existing reserve capacity has already been leased to Abu Dhabi National Oil Company (ADNOC).

Apart from energy cooperation, India and the UAE also signed agreements related to defence cooperation and infrastructure investment. The UAE also announced a USD 5 billion investment in Indian infrastructure and financial institutions, showing stronger long-term strategic ties between both countries.

This was PM Modi’s eighth visit to the UAE since 2015, highlighting the growing importance of the bilateral relationship. Both countries are also working toward doubling bilateral trade to USD 200 billion over the next six years.