3 min readNew DelhiMay 14, 2026 02:34 AM IST
At a time when the Indian government is adopting austerity measures amid the looming energy crisis due to the closure of the Strait of Hormuz, India and the UAE are likely to sign two pacts in the areas of “LPG and Strategic Petroleum Reserves” during Prime Minister Narendra Modi’s visit on May 15, sources said on Wednesday.
During the PM’s visit to the UAE, sources stated that one of the key areas of focus will be “energy security”. “Two important MoUs in the areas of LPG and Strategic Petroleum Reserves are likely to be concluded during this visit,” the source said.
Underlining that the UAE has been an important partner in India’s energy security, sources said that “last year, the UAE was the 4th largest source of crude oil meeting nearly 11% of our requirement”. UAE is the largest source of LPG for India, meeting nearly 40 per cent of India’s requirement, sources said. Sources said that through the current turmoil, the UAE has remained one of India’s most reliable energy partners and continues to be so. “With long term supply agreements in place, India’s energy security has been bolstered. Enhancing energy cooperation will be a key agenda of the visit,” the source said.
2018 pact first on crude reserves
The UAE has been the first country to partner with India in the “Strategic Petroleum Reserves”. In 2018, Indian Strategic Petroleum Reserves Limited (ISPRL) and Abu Dhabi National Oil Company entered into an agreement for the UAE to store over 5 million barrels of crude oil reserves in ISPRL’s facility in Mangaluru. ISPRL is a specialised Indian public sector company under the Petroleum ministry, responsible for maintaining the nation’s strategic crude oil reserves, holding 5.33 million metric tonnes of crude across three underground facilities to ensure energy security against supply disruptions.
According to the current itinerary, PM Modi will visit the UAE on May 15 to meet the UAE President Sheikh Mohamed bin Zayed Al Nahyan (MBZ). The PM has visited UAE seven times since 2014 and MBZ has visited India five times, last in January this year, accompanied by the next generation of UAE leaders — projected as marking the resilience of the bilateral relationship which has strengthened across generations. At a time when India is navigating security and economic challenges amidst the instability in West Asia, the UAE, which has a comprehensive strategic partnership with India and is home to a large Indian diaspora, has been included in the Prime Minister’s itinerary at the last minute.
The UAE has been one of the main targets of Iranian missile attacks ever since the start of the West Asia war on February 28. Tehran accuses the emirates of providing safe space to American military bases, facilities and personnel. And amid the crisis in the Strait of Hormuz, which has impacted energy supplies to much of the world, including India, the UAE announced it was exiting the OPEC, the bloc of oil-producing exporters headed by Saudi Arabia.
