India at heart of megatrends driving energy demand growth, says UAE industry minister amid deepening oil, gas trade

“At the heart of all three megatrends sits one nation, and that is India. As the world’s third-largest energy consumer, it has become a decisive driver of global demand. Over the next 15 years, air travel in India will grow by 150%. India’s cities will approach one billion people. And its data center capacity will increase ten-fold,” Al Jaber, who is also the, said at the India Energy Week here.

“Together, these megatrends are driving the largest expansion of energy demand in human history, faster, broader and more complex than anything we have seen before,” he said.

According to him, between now and 2040, global oil demand is likely to stay above 100 million barrels per day (bpd), while demand for liquefied natural gas (LNG) as well as electricity is expected to rise by half.

“Demand at this scale and pace requires investment in all forms of energy. The biggest risk is not over supply, it is underinvestment. And you know what, what we are really seeing play out is energy addition,” he said as he highlighted that despite one in four cars sold last year being an electric vehicle, demand for petrol continues to rise.

Speaking on the India-UAE relationship in the energy sector, Al Jaber said, “As India consumes more crude to fuel its refineries, ADNOC is proud to be a trusted, dependable supplier. As India aims to double natural gas in its energy mix, we have made this nation our number one market for LNG. As millions of Indian households turn to cleaner cooking fuels, we are already India’s largest supplier of LPG. We will continue to supply feedstocks and chemicals for India’s petrochemical and industrial needs.”

The UAE is also India’s fourth-largest source of India’s oil imports, behind Russia, Iraq, and Saudi Arabia. India depends on imports to meet over 88% of its oil demand and around half of its natural gas demand. The country depends on imports to meet around two-thirds of its LPG requirement.

He added that as India expands its renewable energy capacity, the UAE is investing across 11 gigawatts of solar, wind, and storage projects in India through its global climate investment vehicle Altérra, which is the world’s largest private climate investment fund. The fund has a $30-billion commitment from the UAE, and aims to mobilse further investments of up to $250 billion by 2030.

“As Prime Minister Narendra Modi put it so clearly, India does not do progress in increments, it goes for quantum leaps. And progress at this pace, and growth at this scale demands a special kind of partnership. Partnership that is strategic, long-term, agile, and flexible. Partnership that is steadfast, dependable, principled, and consistent. And partnership that is based on trust and will endure through thick and thin. That is precisely what defines the UAE-India relationship,” he UAE minister said on the broader relationship between the two countries.

Last year, India-UAE trade breached the $100-billion mark, spanning sectors like energy, technology, logistics, infrastructure, health, education, and tourism. Last week, during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s India visit, the two countries agreed to double bilateral trade to $200 billion by 2032.