New Delhi: India and Saudi Arabia have agreed to work with each other to enhance the stability of global oil markets and to balance global energy market dynamics, a joint statement released on Wednesday said. However, no new pacts pertaining to the energy sector were signed by the two sides during this visit of Prime Minister Narendra Modi to the country. “They emphasised the need to ensure security of supply for all energy sources in global markets. They agreed on the importance of enhancing cooperation in several areas in the energy sector… ,” said the joint statement.
According to the statement, the areas of co-operation identified by India and Saudi Arabia in the energy sector include, the supply of crude oil and its derivatives including LPG, collaboration in India’s Strategic Reserve Programme, joint projects across the refining and petrochemical sector, including manufacturing and specialised industries, innovative uses of hydrocarbons, electricity, and renewable energy, including completing the detailed joint study for electrical interconnection between the two countries, exchanging expertise in the fields of grid automation, grid connectivity, electrical grid security and resilience, and renewable energy projects and energy storage technologies, and enhancing the participation of companies from both sides in implementing their projects.
The two sides emphasised the importance of cooperation in the field of green/clean hydrogen, including stimulating demand, developing hydrogen transport and storage technologies, exchanging expertise and experiences to implement best practices. India and Saudi also acknowledged the need to work on developing supply chains and projects linked to the energy sector, enabling cooperation between companies, enhancing cooperation in the field of energy efficiency and rationalising energy consumption in the buildings, industry, and transportation sectors, and raising awareness of its importance, said the statement.
“Both sides recalled the signing of the Memorandum of Understanding (MoU) on the Principles of an India-Middle East-Europe Economic Corridor along with other countries in September 2023 during the state visit of HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of Kingdom of Saudi Arabia to India and expressed mutual commitment to work together to realise the vision of connectivity as envisaged in the Corridor, including the development of infrastructure that includes railways and port linkages to increase the passage of goods and services, and boost trade among stakeholders, and enhance data connectivity and electrical grid interconnectivity. In this regard, both sides welcomed the progress under the MoU on Electrical Interconnections, Clean/Green Hydrogen and Supply Chains signed in October 2023. Both sides also expressed satisfaction on the increase in shipping lines between the two countries,” said the joint statement.
