India, UAE ink $3B LNG deal, expand trade and defence cooperation

India, UAE ink $3B LNG deal, expand trade and defence cooperation

NEW DELHI/DUBAI — India signed a $3 billion liquefied natural gas supply deal with the United Arab Emirates on Monday, elevating India to the UAE’s top customer and deepening ties as the two countries pledged to expand trade and pursue a strategic defense partnership.

Under the agreement, Abu Dhabi’s ADNOC Gas will supply 0.5 million metric tons of LNG annually to Hindustan Petroleum Corp. for 10 years. ADNOC Gas said the contract lifts the total value of its agreements with Indian buyers to more than $20 billion, underscoring India’s centrality to the company’s long-term LNG strategy.

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

The deal coincided with a swift two-hour visit to New Delhi by UAE President Sheikh Mohamed bin Zayed Al Nahyan, who met Indian Prime Minister Narendra Modi for talks focused on energy security, trade and security cooperation. The leaders said they would work to double bilateral trade to $200 billion within six years and advance plans for a strategic defense partnership.

India’s Foreign Secretary Vikram Misri said both sides signed a letter of intent to lay the groundwork for that defense partnership. He emphasized, however, that deeper cooperation with the UAE would not automatically draw India into regional conflicts.

“Our involvement on the defense and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region,” Misri told reporters.

The UAE is India’s third-largest trading partner. Monday’s energy agreement adds a long-term anchor to a relationship that has broadened in recent years from remittances and investment to critical supply chains and defense dialogue. The visit was notable for its compact agenda: Sheikh Mohamed, accompanied by his defense and foreign ministers, focused on sealing the LNG deal and setting timelines for the trade and security tracks.

The India-UAE moves come as security alignments shift across the wider region. Pakistan, India’s rival neighbor, signed a mutual defense agreement with Saudi Arabia last year, and a Pakistani minister said last week that Islamabad is preparing a draft three-way defense arrangement with Turkey and Saudi Arabia. At the same time, Saudi Arabia and the UAE — long close partners — have increasingly diverged on regional policy, with strains exposed in Yemen and disagreements over oil output.

Against that backdrop, Monday’s commitments point to a pragmatic convergence between New Delhi and Abu Dhabi: long-duration energy contracts that secure volumes for India and guaranteed demand for the UAE, paired with a structured pathway to expand defense cooperation without binding commitments to regional conflicts.

The LNG deal also highlights ADNOC Gas’s push to lock in reliable Asian customers. For India, the contract offers supply stability from a nearby producer at a time of fluctuating global gas markets and ongoing efforts to reinforce energy security.

Both governments framed the announcements as steps toward a broader economic and security framework. Specifics of the defense partnership are yet to be negotiated, but the letter of intent signals an intent to deepen collaboration on technology, training and maritime awareness, while the trade target sets a measurable benchmark for the next six years.

As the agreements move from pledges to implementation, the India-UAE corridor is set to grow as a pillar of energy and security cooperation spanning the Indian Ocean and the Gulf.

By Ali Musa
Axadle Times international–Monitoring.