Energy to defence, India, UAE deepen ties; PM calls for opening of Hormuz, Pg1

Key Highlights:

• India and UAE signed agreements for a strategic defence partnership, storage of 30 million barrels in Indian strategic petroleum reserves, supply of LPG, and a ship repair cluster in Gujarat's Vadinar.
• The UAE pledged investments totaling USD 5 billion in Indian infrastructure, RBL Bank, and Samman Capital.
• Prime Minister Modi emphasized the importance of a "free, open and safe" Strait of Hormuz to President Sheikh Mohamed bin Zayed Al Nahyan.
• The UAE is India's largest source of LPG, catering to nearly 40% of the requirement.

Detailed Insights:

• The strategic defence partnership aims to deepen defence industrial collaboration, cooperation on innovation and advanced technology, training exercises, maritime security, cyber defence, secure communications, and information exchange.
• Energy security was a major focus, with the UAE being India's fourth-largest source of crude oil, meeting nearly 11% of the requirement last year.
• The Abu Dhabi National Oil Company (ADNOC) will enhance its participation in India's Strategic Petroleum Reserves and collaborate to establish strategic gas reserves in India.
• Investments include USD 1 billion from Abu Dhabi Investment Authority (ADIA) and National Infrastructure & Investment Fund (NIIF) in India's infrastructure sector.
• The Strait of Hormuz is vital for regional peace, stability, and energy and food security, and India supports ensuring safe transit passage and unimpeded navigation through it.

Key Concepts Involved:

• Strategic Petroleum Reserve: Stockpiles of crude oil maintained by a country to cushion against supply disruptions.
• LPG (Liquefied Petroleum Gas): A flammable mixture of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles.
• Strait of Hormuz: A narrow waterway between Oman and Iran connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, a vital route for global oil supplies.