India Eyes Bigger UAE Role In LPG, LNG Supply; Subsea Gas Pipeline Study Underway: Piyush Goyal

India is examining ways to expand the UAE’s role as a key supplier of liquefied petroleum gas (LPG) and liquefied natural gas (LNG), while also studying the possibility of using subsea pipelines for transporting and storing gas, Commerce and Industry Minister Piyush Goyal said on Monday.

Speaking after the 14th meeting of the India-UAE High Level Joint Task Force on Investments, Goyal said energy cooperation has gained importance amid changing geopolitical conditions.

“Given the geopolitical situation currently, UAE being a trusted partner, we are working with them to expand strategic petroleum reserves in India,” Goyal said.

“We are also exploring the possibility of the UAE becoming a more important source of LPG and LNG that we require,” he added.

Energy security remains a priority

Goyal said a study is underway to assess whether underwater pipelines could be used to bring gas into India and support storage requirements. The initiative is part of efforts to improve energy resilience and diversify supply sources amid global uncertainties.

The discussions come as India seeks stronger energy partnerships to manage risks arising from geopolitical tensions and disruptions in international shipping routes.

Beyond energy, India and the UAE are working to deepen economic ties. Goyal said the broader objective is to raise UAE investments in India to $100 billion from the current level of over $25 billion.

The UAE is exploring opportunities across sectors such as space, startups, ports, shipbuilding and India’s capital markets, he said.

Expanding trade and strategic cooperation

Goyal said trade between India and the UAE is increasingly being conducted through local currencies, with rupee-dirham transactions reaching double-digit levels.

He added that the UAE’s adoption of India’s Unified Payments Interface (UPI) is growing rapidly, creating opportunities for cooperation in fintech, artificial intelligence and cybersecurity.

The two countries have identified six areas for maritime cooperation, including ship ownership, modern ports, ship manufacturing, repair and maintenance, shipbreaking and container manufacturing. A dedicated working group will oversee these areas.

India and the UAE have also agreed to establish a formal civil aviation working group to address sectoral issues and encourage investment.

Goyal said bilateral trade is moving towards pre-war levels and could exceed those levels in the coming months. He added that India’s merchandise exports increased by more than 15% between April and September 21 despite geopolitical challenges and disruptions near the Strait of Hormuz.