India To Build 30-M-Barrel Strategic Oil Reserve In UAE, Boosting National Stockpile By 70%

India and the United Arab Emirates have agreed to significantly expand their energy partnership with Abu Dhabi committing to store up to 30 million barrels of crude oil in India’s strategic reserves, according to India’s Ministry of External Affairs. The announcement came after Prime Minister Narendra Modi held high-level talks in Abu Dhabi with UAE President Mohamed bin Zayed Al Nahyan, focusing on energy security, trade, and regional stability amid ongoing volatility in West Asia.

Major Boost To India’s Strategic Petroleum Storage

The agreement marks a major step in strengthening India’s energy security architecture through enhanced cooperation between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company. Under the new Strategic Collaboration Agreement, the UAE will expand its participation in India’s petroleum storage programme, reinforcing emergency fuel buffers and improving resilience against global supply shocks, as per reports.

Officials said the arrangement is aimed at ensuring uninterrupted crude availability at a time when tensions in key shipping corridors such as the Strait of Hormuz continue to pose risks to global oil flows.

The MEA noted that both sides also agreed on enhanced coordination to ensure safe and stable maritime transit.

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Expansion Into Gas, LPG & Long-Term Supply Deals

Beyond crude oil storage, India and the UAE have agreed to deepen cooperation in natural gas and LPG infrastructure. A separate agreement between Indian Oil Corporation and ADNOC will secure long-term LPG supply arrangements, strengthening India’s access to critical fuel imports.

The two sides also discussed the creation of strategic gas reserves and expanded LNG and LPG storage projects in India. The UAE remains one of India’s most important energy suppliers, consistently ranking among the top five sources of crude oil and maintaining long-term fuel contracts.

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$5 Billion Investment Push Across Key Sectors

In addition to energy cooperation, the visit resulted in commitments of approximately $5 billion in investments from the UAE into India’s banking, infrastructure, and financial sectors. New agreements were also signed covering defence cooperation, maritime security, shipbuilding, and advanced computing technologies, reflecting a widening strategic partnership beyond hydrocarbons.

The talks also explored potential expansion of crude storage facilities in Fujairah and increased collaboration in global energy trading.

Energy Security Focus Amid West Asia Instability

The agreements come at a time of heightened geopolitical uncertainty in West Asia, with continued disruptions to global energy markets and maritime trade routes.

During the visit, Modi reiterated India’s concerns over regional security and expressed solidarity with the UAE following recent attacks in the region. Both sides stressed the importance of stable energy flows and secure navigation routes for global economic stability.