India, UAE sign $3 billion LNG deal, agree to boost trade and defence ties at leaders meeting

2026-01-20

NEW DELHI/DUBAI, Jan 19 (Reuters) - India signed a $3 billion deal on Monday to buy liquefied natural gas from the United Arab Emirates, making it the UAEs top customer, as the leaders of both countries held talks to strengthen trade and defence ties.

The agreement was signed during a very brief two-hour visit to India by UAE President Sheikh Mohammed bin Zayed Al Nahyan for talks with Indian Prime Minister Narendra Modi. They pledged to double bilateral trade to $200 billion in six years and form a strategic defence partnership.

Abu Dhabi state firm ADNOC Gas (ADNOCGAS.AD), opens new tab will supply 0.5 million metric tons of LNG a year to Indias Hindustan Petroleum Corp (HPCL.NS), opens new tab for 10 years, the companies said.

ADNOC Gas said the agreement brings the total value of its contracts with India to over $20 billion.

India is now the UAEs largest customer and a very important part of ADNOC Gas LNG strategy, the company said.

The UAE is Indias third largest trading partner and Sheikh Mohammed was accompanied by a government delegation that included his defence and foreign ministers. The two sides signed a letter of intent to work towards forming a strategic defence partnership, Indias Foreign Secretary Vikram Misri told reporters.

Indias arch-rival neighbour Pakistan signed a mutual defence agreement with Saudi Arabia last year, and last week a Pakistani minister announced the preparation of a three-way draft defence agreement between Pakistan, Turkey and Saudi Arabia.

Saudi Arabia and the United Arab Emirates, after being close allies for years, have increasingly diverged over regional policy, with their rift exposed in Yemen, and they have also had disagreements over oil output.

Misri, however, said that the signing of the letter of intent with the UAE does not mean that India will get involved 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.