India and UAE Seal $3bn LNG Deal, Deepen Trade and Defence Cooperation

India and the United Arab Emirates have signed a $3 billion liquefied natural gas (LNG) agreement, strengthening their energy partnership as leaders from both countries pledged to significantly expand trade and deepen defence cooperation.

The deal was finalised during a brief two-hour official visit to New Delhi by UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, who held talks with Indian Prime Minister Narendra Modi aimed at advancing strategic ties.

Long-Term LNG Supply Agreement

Under the agreement, Adnoc Gas will supply 0.5 million metric tonnes of LNG annually for 10 years to Hindustan Petroleum Corporation Limited (HPCL). The companies confirmed that the long-term supply contract reinforces India’s role as a key market in the UAE’s LNG export strategy.

Adnoc Gas said the agreement lifts the total value of its LNG contracts with India to more than $20 billion, making India the UAE’s largest LNG customer.

“India is now the UAE’s largest customer and a vital pillar of Adnoc Gas’ long-term LNG strategy,” the company said in a statement.

Ambitious Trade and Defence Goals

During the talks, the two leaders reaffirmed their ambition to double bilateral trade to $200 billion within six years, building on the strong momentum generated by recent economic and investment cooperation.

India and the UAE also agreed to work toward a strategic defence partnership, signing a letter of intent to enhance collaboration in defence and security areas.

India’s Foreign Secretary Vikram Misri said the agreement reflects growing trust between the two countries but does not signal India’s involvement in regional conflicts.

“Our involvement on the defence and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region,” he said.

Growing Strategic Partnership

The UAE is currently India’s third-largest trading partner, and Sheikh Mohamed was accompanied on the visit by a high-level delegation that included the UAE’s defence and foreign ministers, underlining the strategic importance of the relationship.

Analysts say the LNG deal and defence discussions highlight the evolving India–UAE strategic partnership, which increasingly spans energy security, trade, investment, and regional stability.