On January 19, 2026, India and the United Arab Emirates (UAE) made an important agreement. India decided to buy a large amount of liquefied natural gas (LNG) from the UAE. The deal is worth $3 billion. With this agreement, India has become the biggest customer for gas exports from the UAE. This means India is now buying more gas from the UAE than any other country.

What is the deal about?

The agreement states that ADNOC Gas, a company from the UAE, will send large amounts of LNG to India. Specifically, they will supply 0.5 million metric tons of LNG every year for the next 10 years. This supply is planned to begin in 2028, giving both countries enough time to prepare.

The LNG will come from ADNOC's Das Island facility. This is a special place in the UAE where natural gas is turned into LNG so it can be shipped easily to other countries. The Das Island plant is very big, and it can make up to 6 million tonnes of LNG each year. This means there is a lot of extra capacity, and India will be getting a small but steady part of that.

The LNG will be transported to India and received at the Chhara LNG Terminal in Gujarat. This is a special port where the LNG can be received and turned back into gas so it can be used by homes, factories, and power plants.

The contracts between ADNOC Gas and Indian companies, including this one, are now worth more than $20 billion in total. This shows how serious and significant the cooperation is between the two countries when it comes to energy.

Why is this important for India?

India is trying to change the main sources of energy it uses. Right now, India relies heavily on coal and oil, which can cause pollution and are not always reliable. The government has a goal to increase the use of natural gas in its energy mix. By 2030, India wants natural gas to make up 15% of its energy sources. This deal helps India work toward that goal.

Using more natural gas can help India reduce pollution because natural gas burns cleaner than coal and oil. It also helps India secure reliable energy sources from a reliable partner like the UAE, which can help maintain steady energy supply for its growing population and economy.

How did the deal come about?

The agreement was finalized during a visit by the UAE President, Sheikh Mohamed bin Zayed Al Nahyan, to India. Visiting leaders often sign important deals and strengthen friendships during such visits. This deal is a sign that India and the UAE want to work more closely together in many areas, especially in energy and trade.

Both countries have a goal to increase their trade to $200 billion by the year 2032. To reach this goal, they are working on many types of business and economic partnerships. This energy deal is just one part of larger efforts to boost cooperation and economic growth.

Current status

The deal has been officially signed and will start in 2028. Both countries are now making preparations to ensure the delivery of LNG begins smoothly. At the moment, no additional details about the specific agreements or arrangements beyond what has been announced publicly are available.

Why does this matter?

This agreement is important because it helps India secure more natural gas. As India’s population and economy grow, the country needs more energy. Having a reliable supplier from the UAE means India can rely on more clean energy sources and reduce its dependence on other fuels.

It also helps strengthen relationships between India and the UAE. When two countries cooperate in areas like energy, trade, and investments, it can lead to more friendship and stability. This type of partnership benefits both nations in many ways.

Important facts:

  • The deal was signed on January 19, 2026.
  • The contract lasts for 10 years.
  • India will get 0.5 million metric tons of LNG each year.
  • The total value of contracts with Indian companies over time is more than $20 billion.
  • The LNG supply begins in 2028.
  • Both countries aim to increase their annual trade to $200 billion by 2032.

Official viewpoint

While the deal shows that India and the UAE are working closely together, it does not mention any specific defense or military cooperation at this time. The main focus seems to be on energy, trade, and economic partnership.

In summary, this agreement represents a major step for both India and the UAE. It helps India meet its energy goals and strengthens their friendship. As both countries work towards their economic and energy targets, this deal could play an important role in their shared future.