India Signs $3 Billion LNG Deal With UAE, Deepens Energy and Defence Ties

India and the United Arab Emirates have taken a major step in deepening their economic and strategic partnership with the signing of a long-term liquefied natural gas supply agreement, alongside commitments to expand trade and defence cooperation. 

Long-Term LNG Supply Agreement 

Under the agreement, Abu Dhabi state-owned ADNOC Gas will supply 0.5 million metric tonnes of LNG annually to Hindustan Petroleum Corporation for a period of 10 years.  

The deal is valued at $3 billion and makes India the UAE’s largest LNG customer. With this contract, ADNOC Gas’ cumulative LNG agreements with India now exceed $20 billion. 

“India is now the UAE's largest customer and a very important part of ADNOC Gas' LNG strategy,” the company said. 

Trade Expansion and Defence Cooperation 

The LNG agreement was signed during UAE President Sheikh Mohammed bin Zayed Al Nahyan’s brief visit to India, where he held talks with Prime Minister Narendra Modi. Both leaders committed to doubling bilateral trade to $200 billion over the next 6 years.  

The 2 countries also signed a letter of intent to work towards a strategic defence partnership, reinforcing cooperation in security and defence manufacturing. 

India’s Foreign Secretary Vikram Misri clarified that enhanced defence engagement with the UAE does not imply involvement in regional conflicts, stating that cooperation would remain aligned with India’s independent foreign policy approach. 

Read More: India Expands Global Trade Network with Seven FTAs and CEPAs in Five Years! 

Conclusion 

The LNG deal strengthens India’s long-term energy security while reinforcing its growing strategic and economic partnership with the UAE, reflecting New Delhi’s broader focus on diversified energy sourcing and geopolitical balance. 

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