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India, UAE Set to Fast-Track Plan to Expand Strategic Oil Storage Capacity

India and the United Arab Emirates (UAE) are set to accelerate efforts to expand strategic crude oil storage capacity to 30 million barrels as part of a broader energy security initiative following agreements signed during Prime Minister Narendra Modi’s recent visit to the UAE.

The move aims to strengthen India’s resilience against global oil supply disruptions, particularly given its heavy dependence on imports for nearly 88 percent of its crude oil requirements. Currently, UAE-linked storage capacity in India stands at about 5.8 million barrels, and the expansion plan includes both existing underground caverns and new infrastructure projects across strategic locations.

The initiative involves collaboration between Indian authorities and UAE energy stakeholders, including the Abu Dhabi National Oil Company (ADNOC), which already participates in India’s Strategic Petroleum Reserve program. The expansion is expected to be implemented through a combination of commercial and strategic storage models, enabling flexible usage of stored crude for domestic consumption or international sales under defined conditions.

The initiative is designed to enhance long-term energy security, improve supply chain stability, and provide operational flexibility amid volatile global energy markets, while deepening bilateral energy cooperation between the two countries.

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