The importance of the United Arab Emirates (UAE) for India's energy security will increase more than before. During the bilateral talks held today between Crown Prince Sheikh Khalid bin Mohammed of Abu Dhabi, one of the seven states (emirates) of UAE, who is on a visit to India, and PM Narendra Modi, four important agreements related to the energy sector were signed.
Under this, not only has the way for long-term LNG supply to India from UAE been cleared but an agreement has also been reached between the two countries to explore possibilities in the nuclear energy sector. Also, an agreement has been reached between Abu Dhabi companies to create petroleum reserves for strategic purposes.
The Crown Prince has come on a three-day visit to India
An agreement has been reached between the companies of both countries to build a food products park in India, which will be important for the food security of the UAE in the future. The Crown Prince of Abu Dhabi has come on a three-day visit to India. In his meeting with PM Modi, the main focus was on energy cooperation and business cooperation between the two countries. He offered flowers at Mahatma Gandhi's Samadhi on Monday morning. It is noteworthy that his grandfather Sheikh Zayed bin Sultan Ahmed Nahyan visited the mausoleum of the Father of the Nation in 1992 and the Crown Prince's father and UAE President Sheikh Mohammad Zayed visited the mausoleum in 2016 during his official visit to India. Crown Prince Sheikh Khalid also planted a sapling of golden shower tree there.
Crown Prince identified as UAE's prominent leader
For the first time, saplings planted by three generations of leaders of a country will be seen at Mahatma Gandhi's mausoleum. A large group of government officials and industrialists have also come to India. The Crown Prince is being identified as the prominent leader of the UAE in the future. An important agreement between the two countries is related to approving the production agreement for an oil block in Abu Dhabi to the joint venture of two Indian government companies in UAE, Indian Oil (IOC) and Bharat Petroleum (BPCL).
This will be the first time when an Indian company will be allowed to produce directly in UAE's energy block. The LNG agreement has been signed between IOC GAIL and Abu Dhabi company ADNOC. This will ensure the supply of 1 million metric tonnes of LNG to India annually. This year, Indian companies have already signed two agreements for long-term supply of LNG from the UAE.
Trading started in local currency as well
The most important agreement has been signed between Nuclear Power Corporation of India Limited and Emirates Nuclear Energy Corporation. For the first time, India will work on the possibilities of nuclear energy with a Gulf country. India is working most closely with the UAE in the Gulf region. This trust has increased further after the trade agreement between the two countries in the year 2021. Trading has also started in local currency between the two countries. Regional problems and the situation in Gaza are also likely to be discussed in the talks between Modi and Sheikh Khalid.
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