The robust energy security partnership between India and the United Arab Emirates (UAE) was strengthened following Prime Minister Narendra Modi’s visit to Abu Dhabi in May 2026. Among the multiple sectors that were highlighted as areas of deepening bilateral cooperation, energy security, especially given the recent events in West Asia, is arguably of foremost importance.

Among the key outcomes of his joint meeting with Sheikh Mohamed bin Zayed Al Nahyan, the President of the UAE, was the MoU on Strategic Collaboration between Indian Strategic Petroleum Reserves Limited (ISPRL) and Abu Dhabi National Oil Company (ADNOC).[1] This particular MoU encompasses three primary objectives, including the ‘potential storage of crude oil in Fujairah, UAE, to form part of the Indian strategic petroleum reserve’.[2]

While on the surface, it might appear that this objective adds another dimension to a crucial strategic partnership between the two countries, it is, in actuality, an integral pillar of New Delhi’s drive to create a more resilient energy framework, to much better prepare to mitigate the fallout of a global energy shock, perhaps much more consequential than the disruptions caused due to the Strait of Hormuz crisis.

One of the fundamental reasons that India might be looking to diversify its Strategic Petroleum Reserves (SPR) architecture, and therefore move away from its traditional reliance on domestic facilities and towards overseas SPR, is that the existing infrastructure might prove insufficient to keep up with India’s growing energy needs during periods of protracted hostilities and long-term disruptions to energy supply. Overseas Indian SPR that would potentially be established in Fujairah, therefore, would be able to complement India’s existing infrastructure over the long term. It will also allow India to leverage the existing infrastructure at Fujairah instead of investing in the development of new facilities at home or elsewhere abroad.

At the same time, it can be argued that the longstanding diplomatic and strategic cooperation between the two countries on the one hand, and the robust eight-year partnership, beginning in 2018, between ISPRL and ADNOC in the domain of energy security on the other hand, laid the foundation for Fujairah, a critical energy hub, to emerge as the preferred location to position overseas Indian SPR.

India’s Ambassador to the UAE, Deepak Mittal, pointed out that

Strategic reserves can serve multiple purposes. While a portion may be maintained as part of national emergency stockpiles, another portion can be utilised commercially. The stored crude oil can be sold within India or even supplied to other countries. … Such infrastructure strengthens energy security while offering greater operational flexibility.[3]

Strategic reserves can serve multiple purposes. While a portion may be maintained as part of national emergency stockpiles, another portion can be utilised commercially. The stored crude oil can be sold within India or even supplied to other countries. … Such infrastructure strengthens energy security while offering greater operational flexibility.[3]

For the UAE, the development of Fujairah as a hub for overseas Indian SPR would not only reinforce its growing strategic........

© IDSA