New Delhi [India], May 14 : Prime Minister Narendra Modi's visit to the United Arab Emirates tomorrow is "very significant", coming in the backdrop of what is happening in West Asia, former Indian Ambassador to the UAE Sanjay Sudhir has said, noting that it is a strong symbol of support.
In an interview with ANI, Sanjay Sudhir also spoke about expectations from the visit in terms of boosting India's energy security and likely talks for augmenting supplies of LPG and LNG.
He also spoke about the UAE planning to expand its crude production to 5 million barrels a day by 2027, following its decision to quit OPEC and the likelihood of Indian companies talking to those in the Gulf country for long-term contracts.
Referring to the warmth of ties between the two countries, Sanjay Sudhir said it would be PM Modi's eighth visit to the UAE, and the UAE President has visited India five times.
He said the leadership of the two countries has been meeting regularly and there has been connect across generations.
"I think it's a very significant visit, coming in the backdrop of what is happening in West Asia. It is a very strong symbol of support. This would be PM's eighth visit to the UAE and the UAE President has visited India five times. It means more than once a year, our leadership has been meeting either in the UAE or in India, in addition to other meetings. In that sense, it is important," Sanjay Sudhir said, answering a query on expectations from PM Modi's upcoming visit to the UAE.
"Also, what is important is that we have been able to connect across generations. So, with the visit of the Crown Prince of Abu Dhabi and the Crown Prince of Dubai, that was a very significant thing between the two countries...I think this visit, which is happening tomorrow, will continue where the leaders left and also in the context of what is happening in West Asia these days," he added.
Prime Minister Narendra Modi will embark on a five-nation tour from May 15 to 20. He will first visit the UAE, followed by a visit to the Netherlands, Sweden, Norway, and Italy.
There has been a frosty ceasefire between the United States and Iran. The conflict in West Asia, which started on February 28 with the US and Israel on one side and Iran on the other, has caused global energy supply disruptions.
Sanjay Sudhir said the UAE is India's anchor energy partner in the Gulf region and the relationship has moved well beyond a buyer-seller relationship.
Asked about the UAE quitting OPEC and its impact on energy relations, Sanjay Sudhir said the weakening of any cartel is beneficial for India.
"UAE quitting OPEC was a very significant decision. I think fundamentally, the weakening of any cartel is good for us because we are the third-largest energy consumer and the second-largest energy importer. So, the weakening of a cartel helps us," he said.
Sanjay Sudhir, who served as Ambassador to the UAE from 2021 to 2025 and the Maldives (2019-2021), said the UAE is planning to expand its crude production to 5 million tonnes and Indian companies would be talking to UAE companies about doing some kind of long-term contracts.
"If you see the numbers, the UAE today has the capacity to produce 4.8 million barrels a day. But because of the OPEC cuts, it was cut to 3.2. They are planning to expand it to 5 million barrels a day by 2027. So, if more supply comes in the market, it is good for us. Since there are deep relations between India and the UAE, I am sure our companies would be talking to each other about doing some kind of long-term contracts," he said.
The former envoy said that LPG is the fuel for 340 million households in India and UAE happens to be the second-largest source for LPG for the country.
"I think one of the discussions I can expect would be on augmenting supplies of LPG from the UAE on a consistent basis in the times to come."
"Today, the UAE is our anchor energy partner in the whole of Gulf. Our relationship is a very unique relationship because it has moved well beyond a buyer-seller relationship...Beyond trade, it is also about investment. We have invested more than 1.2 billion dollars in Lower Zakum - a prolific producing field, and also in Area 1 of Abu Dhabi - the exploration and development work," he said.
The former envoy said the UAE is planning to expand its crude production to 5 million tonnes and Indian companies would be talking to UAE companies about doing some kind of long-term contracts.
Sanjay Sudhir, who has spearheaded strategic initiatives in trade, investment, education, and technology in his career as a diplomat, talked about India's Strategic Petroleum Reserves as also LNG supply from the UAE.
"They (the UAE) have invested in our SPR (Strategic Petroleum Reserves) about 5 million barrels and till today, UAE is the only country which has invested in our SPR program. So, it is a very strong relationship. Another thing is about LNG, we have already contracted 4.5 MMT of long-term energy supplies with them because we have to diversify and taking advantage of the proximity of the UAE and also the availability of Fujairah as one of the terminals which is outside the Strait of Hormuz. I think this LNG trade is very important," he said.
Asked about energy supply disruption through the Strait of Hormuz, Sanjay Sudhir said there is need for futuristic planning.
"We are always planning for tomorrow. Hormuz is closed today, but Hormuz has never been closed in the past. There have been so many crises in that area, but it is for the first time that this is closed, and I am very hopeful that going by the discussions between the parties, it will open up at some point and we have to plan today for that situation when Hormuz opens," he said.
"We have to start working right now, from today. I am sure that tomorrow's discussions between the leaders will also be on that," he added.
During Prime Minister Narendra Modi's visit to the UAE, one of the key areas of focus will be energy security.
According to sources, two important MoUs in the areas of LPG and Strategic Petroleum Reserves are likely to be concluded during this visit.
During his UAE visit, PM Modi will meet UAE President Sheikh Mohammed bin Zayed Al Nahyan. They will exchange views on bilateral relations - in particular, energy cooperation - as well as regional and international issues of mutual interest.
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