India, UAE sign $3 billion LNG deal, agree to boost trade, defence ties

India and the United Arab Emirates have solidified a landmark $3 billion liquefied natural gas agreement while committing to significantly expand their bilateral trade and defense cooperation. The deal was finalized during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s brief but impactful two-hour visit to India for discussions with Prime Minister Narendra Modi.

Abu Dhabi’s state energy giant Adnoc Gas will supply approximately 0.5 million metric tons of LNG annually to India’s Hindustan Petroleum Corporation Limited under a decade-long contract. This arrangement elevates India to the position of the UAE’s premier LNG customer and represents a substantial expansion of the energy partnership between the two nations. Adnoc Gas confirmed that this agreement brings their total contractual value with Indian partners to exceed $20 billion.

The leadership summit yielded ambitious economic targets, with both countries pledging to double their bilateral trade volume to $200 billion within the next six years. The UAE currently stands as India’s third-largest trading partner, highlighting the significance of this enhanced economic commitment.

Accompanied by a high-level delegation including defense and foreign ministers, the UAE leadership engaged in comprehensive talks that extended beyond energy cooperation. The two nations signed a letter of intent to establish a strategic defense partnership, though Indian Foreign Secretary Vikram Misri clarified that this enhanced security cooperation does not imply India’s involvement in regional conflicts.

The brief but productive visit underscores the accelerating pace of Indo-Emirati relations, combining energy security with broader economic and strategic objectives that will shape the regional economic landscape for years to come.