|
Noting that the UAE is India's anchor energy partner in the Gulf region and the ties have moved well beyond a buyer-seller relationship, former Indian Ambassador to the UAE Sanjay Sudhir has said that Abu Dhabi quitting OPEC was a very significant decision and weakening of any cartel is good in terms of India's energy needs.
In an interview with ANI ahead of Prime Minister Narendra Modi's visit to the UAE as part of his five-nation tour, Sanjay Sudhir said there would likely be understanding for augmenting supplies of LPG from the UAE on a consistent basis. Asked about the UAE quitting OPEC and its impact on energy relations, Sanjay Sudhir said the weakening of any cartel is beneficial for India. "UAE quitting OPEC was a very significant decision. I think fundamentally, the weakening of any cartel is good for us because we are the third-largest energy consumer and the second-largest energy importer. So, the weakening of a cartel helps us," he said. Sanjay Sudhir, who served as Ambassador to the UAE from 2021 to 2025 and Maldives (2019-2021), said the UAE is planning to expand its crude production to 5 million tonnes, and Indian companies would be talking to UAE companies about doing some kind of long-term contracts. "If you see the numbers, the UAE today has the capacity to produce 4.8 million barrels a day. But because of the OPEC cuts, it was cut to 3.2. They are planning to expand it to 5 million barrels a day by 2027. So, if more supply comes in the market, it is good for us. Since there are deep relations between India and the UAE, I am sure our companies would be talking to each other about doing some kind of long-term contracts," he said. The former envoy said that LPG is the fuel for 340 million households in India and the UAE happens to be the second-largest source for LPG for the country. "I think one of the discussions I can expect would be on augmenting supplies of LPG from the UAE on a consistent basis in the times to come. Today, the UAE is our anchor energy partner in the whole of Gulf. Our relationship is a very unique relationship because it has moved well beyond a buyer-seller relationship...Beyond trade, it is also about investment. We have invested more than 1.2 billion dollars in Lower Zakum - a prolific producing field, and also in Area 1 of Abu Dhabi - the exploration and development work," he said. Sanjay Sudhir said the UAE is planning to expand its crude production to 5 million tonnes and Indian companies would be talking to UAE companies about doing some kind of long-term contracts. He talked about India's Strategic Petroleum Reserves as also LNG supply from the UAE "They (the UAE) have invested in our SPR (Strategic Petroleum Reserves) about 5 million barrels and till today, UAE is the only country which has invested in our SPR program. So, it is a very strong relationship. Another thing is about LNG, we have already contracted 4.5 MMT of long-term energy supplies with them because we have to diversify and taking advantage of the proximity of the UAE and also the availability of Fujairah as one of the terminals which is outside the Strait of Hormuz. I think this LNG trade is very important," he said. Asked about energy supply disruption through the Strait of Hormuz, Sanjay Sudhir said there is need for futuristic planning. "We are always planning for tomorrow. Hormuz is closed today, but Hormuz has never been closed in the past. There have been so many crises in that area, but it is for the first time that this is closed, and I am very hopeful that going by the discussions between the parties, it will open up at some point and we have to plan today for that situation when Hormuz opens," he said. "We have to start working right now, from today. I am sure that tomorrow's discussions between the leaders will also be on that," he added. The United Arab Emirates announced its withdrawal from the OPEC and OPEC+ groupings earlier this month. During Prime Minister Narendra Modi's visit to the UAE, one of the key areas of focus will be energy security. According to sources, two important MoUs in the areas of LPG and Strategic Petroleum Reserves are likely to be concluded during this visit. Prime Minister Narendra Modi will be undertaking a five-nation tour from May 15 to 20. He will first visit the UAE, followed by a visit to the Netherlands, Sweden, Norway, and Italy. In the UAE, PM Modi will meet UAE President Sheikh Mohammed bin Zayed Al Nahyan. They will exchange views on bilateral relations - in particular, energy cooperation - as well as regional and international issues of mutual interest. (ANI)
|
