India's Energy Security Strategy and Bilateral Partnerships
An aspirant should be able to articulate how India is leveraging bilateral partnerships and strategic reserves to enhance its energy security and diversify its energy supply chain, particularly with key partners like the UAE.
Understand the issue · 1/2
Why now
01Current discussions on expanding long-term LPG deals and strategic storage with ADNOC highlight India's ongoing efforts to enhance energy security and diversify supply amidst global energy market volatility and geopolitical shifts.
Core issue
02The article details the Abu Dhabi National Oil Company (ADNOC)'s interest in expanding long-term liquefied petroleum gas (LPG) supply agreements with India and deepening cooperation across crude oil, liquefied natural gas (LNG), naphtha, trading, shipping, and strategic storage. ADNOC views India as a crucial energy market and aims to enhance India's energy security and flexibility. Key areas of collaboration include expanding existing LPG term contracts, increasing ADNOC's oil production capacity, and exploring opportunities with Indian Strategic Petroleum Reserves Ltd. (ISPRL) to expand crude oil, LNG, and LPG storage, including potential new facilities in Visakhapatnam and Chandikhol, and storage at Fujairah in the UAE as part of India's strategic reserve network.
Swipe to study · 01
Build the answer
Dimensions that matter
Enhancing India's Energy Security and Resilience
Diversification of Energy Sources and Supply Chains
Role and Expansion of Strategic Petroleum Reserves (SPR)
Strengthening India-UAE Bilateral Economic and Strategic Relations
Investment and Infrastructure Development in the Energy Sector
Use in your answer
Answer assets
ADNOC as a key supplier
ADNOC supplies over 500,000 barrels of crude oil a day to India, accounting for 'almost one in ten barrels of [India’s] crude imports', and is a leading supplier of LNG and naphtha, crucial for diversifying India's energy basket.
Indian Oil-ADNOC Strategic Collaboration Agreement
Signed in May during PM Modi's UAE visit, this agreement aims to expand LPG supply and trading opportunities, building on an existing term contract since 2023, enhancing long-term energy access.
ADNOC's Production Capacity Expansion
ADNOC is working to increase its oil production capacity to five million barrels a day by 2027, ensuring greater supply reliability for partners like India.
Collaboration with ISPRL for Strategic Storage
ADNOC is exploring opportunities with ISPRL to expand strategic crude oil, LNG, and LPG storage, including potential new facilities in Visakhapatnam and Chandikhol, crucial for India's energy resilience.
Existing and Proposed SPR Locations
India currently has 5.86 million barrels of crude oil storage in Mangaluru, with plans to expand capacity and explore storage at Fujairah in the UAE as part of India’s strategic petroleum reserve network, diversifying storage locations.
How UPSC has tested it
PYQ connections
What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met?
Connection: The PYQ asks about challenges and solutions for India in a world shifting towards bilateralism, and the current issue provides a specific example of India leveraging bilateral partnerships for energy security.
Now apply it
Write one answer
Discuss the significance of international partnerships, such as the one between India and ADNOC, in enhancing India's energy security and economic resilience. What are the key dimensions of such collaborations?
Structure the answer by first defining energy security, then highlighting the benefits of partnerships, specific examples from the article, and finally a forward-looking conclusion.
Write this answerExamine the importance of Strategic Petroleum Reserves (SPRs) for India's energy security. How does collaboration with international partners like ADNOC contribute to strengthening India's SPR network?
Start with the definition and need for SPRs, then discuss their benefits, and finally elaborate on how international collaboration enhances them, using examples from the article.
Write this answer