In a first of its kind deal, India entered in agreement with ADNOC (The United Arab Emirates’ national oil company – Abu Dhabi National Oil Company) to strategically store crude oil. In such agreement, India would benefit as two-thirds of the stored commodity is offered FREE.
It is well known that India imports 79% of its crude oil needs. This exciting offer would fuel many upcoming energy companies and boost the Indian economy. In order to close the deal, India has initiated construction of underground storages in states of Andhra Pradesh and Karnataka. These underground storages are structured to store about 5.3 million tonnes of crude oil. Come what may – these stored crude would act as a buffer against global price shocks and supply disruptions.
After talks with visiting UAE Minister for Energy Suhail Mohammed Al Mazrouei, Mr Pradhan said the tax issue remains to be sorted out before Adnoc can begin storing oil at Mangalore.
“This will be beginning of our strategic ties,” he said, adding that Prime Minister Narendra Modi’s visit to UAE in August last year, the first by an Indian Prime Minister in 38 years, laid the foundation of closer cooperation.
Source: India Today