Nov 15 – India and the United Arab Emirates are considering a new energy security arrangement that would allow New Delhi to store part of its strategic oil reserves in Fujairah, while expanding Abu Dhabi’s access to storage facilities in India.
The proposal, announced during a May 2026 visit, builds on an energy partnership that has evolved from crude oil supplies to joint investments in oil production, strategic reserves and long-term gas contracts.
Under the proposed arrangement, Abu Dhabi National Oil Company (ADNOC) could store up to 30 million barrels of crude oil in India. The two countries are also exploring the possibility of India holding part of its emergency oil stocks in Fujairah, an important UAE export hub outside the Strait of Hormuz.
The arrangement is aimed at strengthening energy security and reducing exposure to disruptions along one of the world’s most important oil shipping routes.
From oil storage to joint investments
The partnership dates back to May 2018, when the tanker MT Inspiration delivered two million barrels of Abu Dhabi crude to an underground storage facility in Mangalore, on India’s western coast.
The shipment marked the beginning of an agreement allowing ADNOC to store up to 5.86 million barrels of crude oil in India at its own cost, while retaining the right to sell the oil commercially.