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First crude oil cargo from Abu Dhabi departs for Mangalore's strategic crude oil reserve

Press Trust of India  |  Dubai 

The first consignment of 2 million barrels of from the UAE for India's reserve at is en-route to and will help it deal with supply side disruptions, for and Natural Gas has said.

The cargo is the first under an agreement between Company (ADNOC) and the Indian Strategic Reserves Ltd (ISPRL), an Indian government-owned company mandated to store for strategic needs.

The loading of approximately 2 million barrels of ADNOC was witnessed by and Sultan Ahmed Al Jaber, UAE of State and CEO, at a ceremony in Abu Dhabi yesterday.

Speaking on the occasion, said: "The UAE is the first country to invest in India's Strategic Reserves Programme. This important partnership will further strengthen the close cooperation that exists between and the UAE and builds on the historic acquisition of a stake in the Lower Zakum offshore concession by Indian companies."

In February, and its partners had acquired a 10 per cent in the Lower Zakum offshore oilfield in Abu Dhabi for USD 600 million.

"The strategic reserve will provide a boost to India's security and help us deal with supply side disruptions. While part of the stored oil will be used for commercial purposes by ADNOC, the major part will be purely for strategic purposes.

Al Jaber said that the strategic reserve project represents an important new partnership with that leverages the UAE and ADNOC's expertise and

"With this partnership, new market opportunities will open up for ADNOC, as we not only help to ensure the of the UAE's largest trading partner, but also gain greater access to one of the fastest-growing markets for high-quality crude oil. Our increased presence in India, will also catalyse demand for our own refined and petrochemical products," he said.

Indian is forecast by the International Energy Agency (IEA) to grow by more than any other country in the period to 2040, propelled by an economy that will grow to more than five-times its current size and by population growth that will make it the world's most populous country.

India's is expected to more than double by 2040, accounting for 25 per cent of the rise in global energy, and the largest absolute growth in

India is 82 per cent dependent on imports to meet its crude oil needs, eight per cent of which is supplied by the UAE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 15 2018. 13:55 IST
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