India and UAE deepen ties with 10-year LNG supply pact

India and the United Arab Emirates agreed to deepen a Comprehensive Strategic Partnership and finalised a decade-long liquefied natural gas supply contract, part of a wider package of energy, trade, defence and commercial measures announced during high-level talks in New Delhi.

Under the LNG agreement, Abu Dhabi National Oil Company (ADNOC) will supply 0.5 million metric tons of LNG annually to Hindustan Petroleum Corporation Limited (HPCL). The contract runs for 10 years and is scheduled to begin deliveries in 2028, with cargoes to be sourced from ADNOC Gas’ Das Island liquefaction facility, one of the world’s longest-operating LNG plants. Industry reporting places the commercial value of the deal at roughly $2.5 billion to $3 billion and describes the contract as converting a previously signed heads-of-agreement into a binding long-term sales and purchase arrangement.

The HPCL-ADNOC pact adds to a string of long-term agreements that have bolstered India’s access to Gulf gas. ADNOC projects around 15.6 million tonnes per annum of LNG capacity by 2029, and more than 3 million tonnes per annum of that capacity is already contracted to Indian buyers, according to sector analysis. Previous agreements between ADNOC and Indian firms have been reported at various sizes, including a 1.0 mmtpa, a 1.2 mmtpa and a 0.5 mmtpa deal in different combinations and tenors. Sources differ on precise totals, but the cumulative picture points to a significant and growing exposure of ADNOC’s liquefaction output to Indian demand.

Beyond LNG supply, the leaders set an explicit target to double bilateral trade to $200 billion by 2032, reflecting a push to deepen commercial ties across energy, finance, technology and defence. The summit welcomed the establishment of First Abu Dhabi Bank and DP World operations in Gujarat’s GIFT City, a move designed to strengthen financial and services linkages and support the city’s emergence as an international hub. Abu Dhabi’s sovereign fund ADQ has signed commercial memoranda, including a plan to develop a food park in Gujarat with construction slated to begin in the second quarter of 2025.

Energy cooperation extended to strategic petroleum storage, upstream partnerships and nuclear technology. The two sides agreed to renew cooperation on strategic petroleum reserves and to examine expanded crude storage facilities in India. A production concession for Abu Dhabi’s onshore Block 1 between ADNOC and Urja Bharat, a joint venture of Indian Oil Corporation and Bharat Petro Resources, was highlighted as a first contract enabling an Indian company to operate in the UAE. The leaders also committed to exploring collaboration in advanced nuclear technologies, including large reactors and small modular reactors, contingent on the implementation of India’s SHANTI law and with an emphasis on nuclear safety and operations.

Officials flagged mobility and technological linkages intended to ease labour and educational exchanges, including plans to integrate India’s DigiLocker system with UAE platforms for recognition of academic credentials. The summit concluded with broad commitments to deepen defence cooperation, bolster regional stability and expand scientific work on climate resilience. The package signals a strategic deepening of ties that combines immediate energy deliveries with longer-term infrastructure and security cooperation aimed at locking in diversified supplies and closer economic integration.