ADNOC deepens India energy storage ties

ADNOC has widened its energy partnership with India through two strategic collaboration agreements covering crude oil storage, strategic reserves, liquefied natural gas and liquefied petroleum gas, strengthening supply links at a time of heightened volatility in global shipping and fuel markets.

Signed in Abu Dhabi in the presence of UAE President Sheikh Mohamed bin Zayed Al Nahyan and Prime Minister Narendra Modi, the agreements underline the growing role of the UAE as a long-term energy partner for one of the world’s fastest-expanding fuel markets. They also reinforce ADNOC’s commercial position across crude, LNG and LPG supply chains, while giving New Delhi wider options to build buffer stocks and diversify energy sourcing.

One agreement was exchanged between ADNOC and Indian Strategic Petroleum Reserves Limited, the state-backed entity that manages India’s emergency crude storage network. It will explore opportunities across crude oil, LNG and LPG storage, including strategic reserves. A key element is the potential expansion of ADNOC’s crude oil storage in India to as much as 30 million barrels, covering existing arrangements at Mangalore and possible new storage opportunities at Visakhapatnam and Chandikhol.

Another part of the understanding will examine the possibility of crude storage in Fujairah forming part of India’s strategic petroleum reserve framework. Fujairah’s location outside the Strait of Hormuz gives it added importance as an energy logistics hub, particularly during periods of disruption in the Gulf and Red Sea shipping corridors. The arrangement could give India greater flexibility in handling supply shocks, while allowing ADNOC to deepen its storage footprint in a high-growth market.

A second agreement was exchanged between ADNOC and Indian Oil Corporation to explore expanded LPG supply and trading opportunities. The plan includes potential involvement by ADNOC Global Trading and builds on an LPG term contract between the companies that has been in place since 2023. The parties will also examine the development of a possible long-term LPG sale and purchase agreement, with a focus on tighter integration across supply, shipping and trading.

Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, 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 underscored ADNOC’s role as a dependable partner in supporting India’s long-term economic growth.

The agreements come against a backdrop of rising energy demand in India, where oil and gas consumption continues to expand alongside industrial output, urbanisation and household fuel use. India remains heavily dependent on imported crude oil and gas, making long-term supply contracts, storage flexibility and diversified import routes central to its energy security planning.

LPG is a particularly sensitive segment because of its role in domestic cooking fuel, commercial use and rural energy access. India has one of the world’s largest LPG consumer bases, and stable supplies are important for both household budgets and inflation management. Expanded cooperation with ADNOC could help smooth procurement during periods of tight international availability or price spikes.

LNG has also become a priority as India seeks to increase the share of gas in its energy mix. ADNOC has already built deeper links with India’s refining and marketing companies through long-term LNG arrangements. A 15-year LNG supply agreement with Indian Oil Corporation for 1 million tonnes per annum from the Ruwais LNG project and a 10-year agreement with Hindustan Petroleum Corporation Limited for 0.5 million tonnes per annum have strengthened the UAE company’s position in India’s gas supply chain.

The broader relationship has moved beyond spot energy trade into infrastructure, storage and strategic planning. India and the UAE are targeting $200 billion in bilateral trade by 2032 under a wider economic partnership that has expanded across energy, logistics, food security, investment and technology. Energy remains the anchor of that relationship, but the latest agreements show a shift from simple seller-buyer arrangements towards shared supply-chain resilience.

For ADNOC, the deals align with its strategy of locking in demand from large Asian markets while expanding its trading, LNG and downstream reach. The company has been investing across gas, petrochemicals, logistics and low-carbon energy while maintaining its core role as a crude supplier. India offers scale, demand visibility and a policy focus on long-term supply security.