EL7.AI
CommoditiesMedium•15 November 2026•
4 min read

India and UAE Explore Storing 30 Million Barrels Under Energy Security Partnership

Key Facts

1The memorandum of understanding announced on May 15, 2026 allows the parties to explore ADNOC storing up to 30 million barrels in Indian reserves.
2The cooperation includes exploring storage of part of India’s strategic reserves in Fujairah.
3In fiscal year 2024-25, the UAE was India’s fourth-largest source of crude, third-largest source of liquefied natural gas and largest supplier of liquefied petroleum gas.
4An Indian official estimated the UAE’s share at about 15 to 20% of India’s total energy imports, including 15% of crude, 10% of liquefied natural gas and 25% of liquefied petroleum gas.

India and the UAE are exploring arrangements to expand oil storage cooperation, including the possibility of placing part of India’s strategic reserves in Fujairah, alongside ADNOC storing up to 30 million barrels in India. The Times of Oman reported the proposal on November 12, 2026, saying the arrangements remain under consideration. The storage plans in India are based on a memorandum of understanding on strategic cooperation between Indian Strategic Petroleum Reserves and ADNOC, announced by the Indian prime minister’s office on May 15, 2026. The memorandum allows the parties to explore ADNOC’s participation in India’s reserves, with potential capacity of up to 30 million barrels. It also covers exploring crude storage in Fujairah as part of India’s strategic reserves.

The proposal has a logistical dimension beyond increasing storage capacity. According to The Times of Oman, crude could be loaded onto tankers in Fujairah without transiting the Strait of Hormuz, allowing India to hold part of its stock in a Gulf location linked to an alternative shipping route. The memorandum links this potential arrangement to ADNOC’s participation in Indian reserve facilities. The prime minister’s office identified Visakhapatnam in Andhra Pradesh as a potential site for the company’s participation, and the development of reserve facilities in Chandikhol in Odisha. This puts the cooperation on two tracks: UAE storage in India and the exploration of Indian storage in the UAE.

The May memorandum builds on earlier storage cooperation: a previous agreement allowed ADNOC to store 5.86 million barrels in India at its own expense, with the volume contributing to emergency reserves. The more recent arrangement aims to explore increasing the company’s participation in India’s reserves to 30 million barrels, according to the May announcement. This coincides with India’s plans to develop its facilities: existing total capacity in Phase I stands at 5.33 million metric tons, while additional facilities with capacity of 6.5 million metric tons have received in-principle approval. The sites named in the cooperation announcement include Visakhapatnam and Chandikhol, while approval for Phase II covers Chandikhol and Padur. Expanding storage infrastructure adds capacity to hold stocks domestically, alongside exploration of an overseas option in Fujairah.

Bilateral cooperation also extends to gas. The memorandum of understanding covers exploring cooperation on liquefied natural gas and liquefied petroleum gas storage facilities in India, and work to establish strategic gas reserves. Indian Oil and ADNOC also signed a separate cooperation agreement to explore opportunities to buy and sell liquefied petroleum gas, including long-term supplies. Under another agreement, ADNOC Gas and Hindustan Petroleum contracted for the purchase of 0.5 million tons of liquefied natural gas annually for 10 years, with deliveries set to begin in 2028. These arrangements indicate that the partnership extends beyond crude oil storage to infrastructure and supplies of other fuels. Storage facilities and commercial agreements remain distinct tracks within the announced cooperation.

The UAE’s share of India’s imports highlights the importance of these ties to both sides. In fiscal year 2024-25, the UAE was India’s fourth-largest source of crude oil, third-largest source of liquefied natural gas and largest supplier of liquefied petroleum gas, according to the Indian prime minister’s office. An Indian official estimated in remarks published on November 5 that the UAE supplies about 15 to 20% of India’s total energy imports, including 15% of crude imports, 10% of liquefied natural gas imports and 25% of liquefied petroleum gas imports. Crude and petroleum products also accounted for 53.9% of India’s merchandise imports from the western Gulf Cooperation Council region in fiscal year 2025-26, according to a report by India’s finance ministry. These figures provide context for New Delhi’s focus on securing its stocks and diversifying supply and storage arrangements.

The Indian government said in a March 11, 2026 briefing that the country imports crude from about 40 countries, and that about 70% of its imports travel on routes outside the Strait of Hormuz, compared with about 55% previously. In a May report, the finance ministry said India had been able to meet its crude needs by diversifying sources despite disruption to the strait. Trade data released on November 13 show that Indian merchandise exports reached $49.47 billion in October 2026, against imports of $89.35 billion; in October 2025, exports were $34.11 billion and imports $76.69 billion. Petroleum product exports also rose 140.21% year on year, from $3.70 billion in October 2025 to $8.89 billion in October 2026. The next step in India’s energy plans remains the start of contracted liquefied natural gas supplies in 2028.