India, UAE sign $3 billion LNG deal, boost trade and defense ties

NEW DELHI,— UAE President Sheikh Mohamed bin Zayed Al Nahyan arrived in New Delhi Monday for a working visit to India.

He was welcomed at Palam Air Base by Indian Prime Minister Narendra Modi and a group of senior officials, local sources said.

The visit aims to strengthen diplomatic and economic ties between the UAE and India, the sources told local media.

India and the United Arab Emirates moved to deepen their economic and security relationship after signing a major energy supply agreement during high level talks in New Delhi on Monday, officials and company statements said.

The two countries finalized a liquefied natural gas deal valued at about $3 billion, under which India will buy fuel from the UAE over the next decade.

The agreement was concluded during a short visit by UAE President Sheikh Mohammed bin Zayed Al Nahyan, who held discussions with Indian Prime Minister Narendra Modi aimed at expanding cooperation in trade, energy and defense.

Under the contract, Abu Dhabi based ADNOC Gas will supply 0.5 million metric tons of LNG annually to Hindustan Petroleum Corp of India for a period of 10 years.

Both companies said the deal strengthens long term energy ties between the two nations. ADNOC Gas added that the latest agreement raises the total value of its contracts with Indian buyers to more than $20 billion.

Company officials said the agreement makes India the largest buyer of LNG from the UAE, highlighting the growing importance of the Indian market in the Gulf country’s export strategy.

India currently ranks as the UAE’s third largest trading partner, with trade spanning energy, manufacturing, technology and services.

During the visit, the two governments also agreed on an ambitious target to double bilateral trade to $200 billion within six years.

Sheikh Mohammed was accompanied by senior members of his cabinet, including the ministers of defense and foreign affairs, Indian officials said.

India’s Foreign Secretary Vikram Misri told reporters that both sides signed a letter of intent to work toward a strategic defense partnership. He said the move reflects closer dialogue and cooperation but does not signal India’s involvement in regional conflicts.

Misri noted that India’s defense engagement with countries in West Asia is focused on cooperation and stability rather than participation in disputes.

He made the remarks amid shifting alliances in the region, including recent defense arrangements involving Pakistan, Saudi Arabia and Turkey.

The UAE president is accompanied by a high-level delegation that includes Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence; Sheikh Hamed bin Zayed Al Nahyan; Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs; and Sheikh Hamdan bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Special Affairs.

Also part of the group are Sheikh Mohammed bin Hamad bin Tahnoun Al Nahyan, advisers to the president, several ministers, and top officials, Emirates News Agency reported.

(With files from Reuters | WAM)

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