Abu Dhabi: First crude oil cargo shipped to India's ISPRL
What's the story
The first consignment of 2 million barrels of crude oil from the UAE for India's strategic petroleum reserve at Mangalore is en route to India and will help it deal with supply-side disruptions, Petroleum and Natural Gas Minister Dharmendra Pradhan said.
It is the first under an agreement between Abu Dhabi National Oil Company (ADNOC) and the Indian Strategic Petroleum Reserves Ltd. (ISPRL).
Information
Pradhan, UAE Minister present at event in Abu Dhabi
The loading of approximately 2 million barrels of ADNOC crude oil was witnessed by Pradhan and Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, in Abu Dhabi yesterday. The government-owned ISPRL is mandated to store crude oil for strategic needs.
Strategic Reserves Program
UAE, first country to invest in India's Strategic Reserves Program
Speaking on the occasion, Pradhan said, "The UAE is the first country to invest in India's Strategic Reserves Program."
"This important partnership will further strengthen the close energy cooperation that exists between India and the UAE and builds on the historic acquisition of a stake in the Lower Zakum offshore concession by Indian companies," the Petroleum and Natural Gas Minister said.
The Project
Presence in India catalyzes demand for ADNOC products: Al Jaber
Al Jaber said the strategic reserve project represents an important new energy partnership with India that leverages the UAE and ADNOC's expertise and oil resources.
"New market opportunities will open up for ADNOC...we not only help to ensure the energy security of the UAE's largest trading partner but also gain greater access to one of the fastest-growing markets for high-quality crude oil," he said.
Crude Oil Demand
UAE supplies 8% of crude oil imported by India
International Energy Agency (IEA) forecast Indian energy demand to grow by more than any other country in the period to 2040, propelled by an economy growing to more than five-times its current size, and by population-growth that will make it the most populous country.
India's energy consumption is expected to more than double by 2040, accounting for 25% of the rise in global energy.