News Desk: India and the United Arab Emirates have signed a major energy cooperation agreement under which Abu Dhabi National Oil Company (ADNOC) will be allowed to store up to 30 million barrels of crude oil in India’s Strategic Petroleum Reserves (SPR), marking a significant step toward strengthening India’s energy security.
The agreement was announced during Prime Minister Narendra Modi’s visit to the UAE, where he held high-level talks with UAE President Mohamed bin Zayed Al Nahyan. The deal is expected to deepen the growing energy partnership between the two countries at a time of continued instability in global oil markets and rising tensions in West Asia.
A major milestone for India’s energy security 🇮🇳🤝🇦🇪
Following PM Shri @narendramodi Ji’s visit, the UAE will store up to 30 million barrels in India’s Strategic Petroleum Reserve.
✔ UAE bears the storage cost
✔ India gets priority access during emergenciesA strategic… pic.twitter.com/UEVCjoeF5D
— Harsh Sanghavi (@sanghaviharsh) May 15, 2026
Under the arrangement, ADNOC is expected to expand its participation in India’s underground crude oil storage network. The UAE company already stores crude oil at India’s Mangaluru strategic reserve facility under an earlier agreement. The new pact could substantially increase ADNOC’s storage footprint in India, including possible participation in facilities at Visakhapatnam and the upcoming Chandikhol reserve site in Odisha.
The development comes amid concerns over global crude supply disruptions and uncertainty surrounding shipping routes through the Strait of Hormuz. India, which depends heavily on imported crude oil to meet domestic demand, has been steadily expanding its strategic petroleum reserves to protect itself from sudden supply shocks and sharp fluctuations in oil prices.
Officials familiar with the discussions said both countries are also exploring the possibility of crude oil storage cooperation in Fujairah, UAE, as part of a broader strategic reserve framework. In addition, India and the UAE discussed collaboration in Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) infrastructure projects.
India currently operates strategic petroleum reserve facilities at Visakhapatnam, Mangaluru and Padur. The proposed ADNOC expansion is expected to significantly boost India’s emergency oil storage capacity and improve the country’s preparedness during international energy crises.
The agreement also highlights the rapidly expanding India-UAE economic relationship, which has grown beyond traditional oil trade into areas such as renewable energy, infrastructure, defence and long-term investment partnerships.
