India Eyes Bigger UAE Role In LPG, LNG Supply; Subsea Gas Pipeline Study Underway: Piyush Goyal

India is considering increasing the UAE's role in supplying liquefied petroleum gas (LPG) and liquefied natural gas (LNG), according to Commerce and Industry Minister Piyush Goyal. Goyal made this statement after the 14th meeting of the India-UAE High Level Joint Task Force on Investments. The exploration of expanded gas supply cooperation is driven by evolving geopolitical conditions.

Goyal highlighted that the UAE, as a reliable partner, is being engaged to bolster strategic petroleum reserves within India. The Commerce Minister also revealed that the Indian government is conducting a study to determine the feasibility of employing subsea pipelines for gas transportation and storage, aimed at enhancing energy resilience and diversifying supply sources amidst global uncertainties.

These discussions unfold as India strives for stronger energy partnerships to mitigate risks stemming from geopolitical tensions and disruptions in international shipping routes. In addition to energy matters, India and the UAE are keen on deepening their economic ties, with Goyal expressing a goal to elevate UAE investments in India from the current over $25 billion to $100 billion.

The UAE is actively scouting opportunities across sectors like space, startups, ports, shipbuilding, and India's capital markets. Goyal noted a rising trend in bilateral trade conducted via local currencies, with rupee-dirham transactions surging to double-digit levels. The UAE's incorporation of India's Unified Payments Interface (UPI) is advancing rapidly, fostering prospects in fintech, artificial intelligence, and cybersecurity.

Both nations have identified six areas for maritime cooperation, encompassing ship ownership, modern port development, ship manufacturing, repair and maintenance, ship-breaking, and container manufacturing. A dedicated working group will oversee these sectors. Moreover, India and the UAE have agreed to set up a formal civil aviation working group to address sector-specific concerns and stimulate investment.

Goyal reported that bilateral trade is inching back towards pre-war levels and might surpass those levels shortly, attributing this progress to India's merchandise exports, which surged by more than 15% between April and September 21, despite geopolitical challenges and disruptions near the Strait of Hormuz.