Former Indian Ambassador to the UAE Sanjay Sudhir called Abu Dhabi’s decision to leave OPEC a significant move that could benefit India’s energy security. In an interview with ANI ahead of Prime Minister Narendra Modi’s UAE visit, Sudhir — who served as India’s envoy to the UAE from 2021–2025 (and to the Maldives from 2019–2021) — said the weakening of any cartel is helpful for India, which is the world’s third-largest energy consumer and the second-largest energy importer.
Sudhir noted that the UAE has the technical capacity to produce about 4.8 million barrels per day but, because of OPEC cuts, output had been reduced to roughly 3.2 million barrels per day. Abu Dhabi plans to raise capacity to around 5 million barrels per day by 2027. Increased supply, he argued, would be positive for India and is likely to prompt discussions between Indian and UAE firms on long-term purchase contracts.
He emphasized that India-UAE ties in energy go far beyond simple buyer-seller relations. The UAE is India’s second-largest source of LPG, a fuel used by some 340 million Indian households. Sudhir said consistent augmentation of LPG supplies from the UAE is a realistic expectation going forward. Indian companies have also invested in UAE oil assets — including more than $1.2 billion in Lower Zakum and in Area 1 development work in Abu Dhabi.
On strategic reserves and LNG, Sudhir highlighted that the UAE has been the only country to invest directly in India’s Strategic Petroleum Reserves, contributing about 5 million barrels. India has also signed long-term LNG commitments with the UAE totaling roughly 4.5 million metric tons, leveraging proximity and terminals such as Fujairah, which lie outside the Strait of Hormuz and are important for secure deliveries.
Addressing concerns about potential supply disruptions through the Strait of Hormuz, Sudhir said India must plan for contingencies and for the eventual reopening of the waterway. He expressed hope that diplomatic efforts will resolve current closures and stressed the importance of beginning preparation now.
The UAE announced its withdrawal from OPEC and OPEC+ earlier this month. Energy security will be a central topic during Prime Minister Modi’s May 15–20 five-nation tour, which begins in the UAE. Sources say two MoUs relating to LPG supplies and Strategic Petroleum Reserves are expected to be signed during the visit, and Modi will meet UAE President Sheikh Mohammed bin Zayed Al Nahyan to discuss bilateral cooperation on energy as well as regional and international issues.
