The Abu Dhabi National Oil Company (ADNOC) is open to further long-term liquefied petroleum gas (LPG) supply agreements with India and sees significant potential to deepen cooperation across crude oil, liquefied natural gas (LNG), naphtha, trading, shipping and strategic storage, Nasser Omair Al Muhairi, its Acting CEO (downstream industry, marketing and trading business) told The Hindu in an exclusive interaction.

“By combining [ADNOC’s] supply, trading and shipping capabilities, ADNOC is well positioned to provide Indian customers with reliable long-term LPG access, greater flexibility and enhanced energy security,” he said..

Mr. Al Muhairi described India as one of ADNOC’s most important energy markets.

Building on LPG supply agreement

Indian Oil had signed a strategic collaboration agreement with ADNOC in May during Prime Minister Narendra Modi’s visit to the United Arab Emirates (UAE). The agreement seeks to expand LPG supply and trading opportunities, including through ADNOC’s global trading unit, and potentially pave the way for a long-term sale and purchase agreement, building on the LPG term contract in place since 2023.

Mr. Al Muhairi said ADNOC’s “reliability, operational resilience and proximity” to key demand centres positioned it as a trusted partner in meeting India’s growing energy needs.

India among top energy markets

ADNOC supplied more than 500,000 barrels of crude oil a day to India in 2025, accounting for “almost one in ten barrels of [India’s] crude imports”, Mr. Al Muhairi said. The company is also among India’s leading suppliers of LNG and naphtha.

“Building on this foundation, we see significant opportunities to deepen cooperation across crude, LNG, LPG, naphtha, trading, shipping and strategic storage,” he said.

ADNOC’s ambition, he added, extended beyond supplying more energy to Indian customers to providing “greater security and flexibility while supporting investment and growth across the energy value chain.”

Expanding supply capacity

Mr. Al Muhairi said that ADNOC is working to increase its oil production capacity to five million barrels a day by 2027. It is also expanding domestic gas production and broadening access to global LNG supplies.

“Recent market conditions have reinforced the value of this integrated approach, with logistics and export infrastructure helping maintain reliable and flexible supply during periods of disruption,” Mr. Al Muhairi said.

Strategic storage plans

ADNOC is also exploring opportunities with Indian Strategic Petroleum Reserves Ltd. (ISPRL) to expand storage of crude oil, LNG and LPG, including strategic reserves.

“Our (ADNOC’s) immediate priority is advancing commercial and regulatory work with Indian Strategic Petroleum Reserves Limited (ISPRL) to determine capacities, investment and timelines,” Mr. Al Muhairi said.

The collaboration envisages increasing ADNOC’s crude oil storage capacity in India to as much as 30 million barrels. This includes the existing 5.86 million barrels of storage in Mangaluru and potential new facilities in Visakhapatnam and Chandikhol.

The two sides are also exploring the possibility of storing crude oil at Fujairah in the UAE as part of India’s strategic petroleum reserve network.

Wholesale price inflation shot up to 8.30% in April, from 3.88% in March, led by a sharp spike in prices of fuel, power and crude petroleum.

Wholesale price index (WPI)-based inflation in fuel and power jumped to 24.71% in April, from 1.05% in March. In crude petroleum, inflation was 88.06% in April compared to 51.5% in the previous month.

The sharp rise in WPI inflation reflects the impact of the West Asia crisis and the effective blockade of the Strait of Hormuz through which the majority of the crude oil is imported to India.

Inflation in food articles was 1.98% in April, compared to 1.90% in March. In non-food articles, inflation rose to 12.18% during April, 11.5% in the previous month, data released by the commerce and industry ministry showed.

“Positive rate of inflation in April 2026 is primarily due to an increase in prices of mineral oils, crude petroleum & natural gas, basic metals, other manufacturing and non-food articles, etc.,” the ministry said in a statement.

In the fuel and power basket, inflation in LPG was 10.92% in April, as against (-) 1.54% in March, while in petrol it was 32.40% against 2.50% in the previous month. In high-speed diesel, inflation was 25.19% in April against 3.26% in March.

Despite a 50% spike in global crude oil prices, the government has so far held fuel pump and household LPG rates stable to shield households from the impact of the retail price rise of petrol, diesel and LPG. However, prices of commercial LPG cylinders have been raised.