New Delhi: Stating that the energy cooperation between India and Saudi Arabia is not limited to a buyer-seller (of crude oil) relationship, Prime Minister Narendra Modi said that the two countries are exploring projects in refining and petrochemicals sector, and green hydrogen, while also working on transnational power grid connectivity. Modi, who is on a two-day visit to Saudi Arabia that began on Tuesday, said in an interview to Arab News that Saudi Arabia will remain a closer partner in India’s energy security. “Energy has been an important pillar of our economic partnership. Saudi Arabia has been a strong and reliable energy partner for us. It is one of our top suppliers of crude and other petroleum products. As India seeks to become a developed country, our energy demands will continue to grow. And Saudi Arabia will remain a close partner in our energy security,” the PM was quoted as saying.
“As strategic partners we agree that our energy cooperation is not limited to mere buyer-seller relationships. We are also exploring joint projects in refineries and petrochemicals,” said Modi.
According to two sources, energy ties and the India-Middle East-Europe Economic Corridor (IMEC) are high on the agenda of topics that the Indian leadership is expected to discuss with the Saudi counterpart, Saudi Prime Minister and Crown Prince Mohammed Bin Salman. The talks will aim to further efforts to link the power grids of the two nations via sub-sea cables and focus on enhancing co-operation in the field of green hydrogen. India and Saudi Arabia had signed a pact on October 8, 2023, agreeing to collaborate with each other in the areas of electrical interconnection, Green/Clean Hydrogen and supply chains.
Stressing on the transformational potential of IMEC for humanity, the Prime Minister termed the project “the new Silk Route of the 21st century.” “I visualise this initiative has a transformational potential for humanity. It can be the new Silk Route of the 21st century that will bring benefit to the generations to come,” said Modi in his interview with Arab News. “Both India and Saudi Arabia have a key role to play in the success of this corridor. We are committed to working with our Saudi partners to realise the vision of connectivity, including multi-modal logistic connectivity, data connectivity and electrical grid connectivity. We are working on clean and green hydrogen and related supply chains under this initiative,” he said.
The IMEC initiative was announced by India and Saudi Arabia on the sidelines of the G20 Summit in New Delhi in September 2023. The initiative aims at establishing a reliable and cost-effective cross-border ship-to-rail transit network to supplement existing maritime and road transport routes, enabling trade in goods and services between India, the UAE, Saudi Arabia, Jordan, Israel and Europe. “We are now working on feasibility studies for electricity grid interconnectivity between India and Saudi Arabia and the wider region. As you can see, we are moving ahead with the vision of a comprehensive energy partnership between our two countries,” the PM told Arab News.
Referring to India’s energy transition journey, Modi said that there is immense scope of collaboration with Saudi Arabia. “This includes the areas of supply chains, circular economy, energy efficiency and green hydrogen. As partners in the International Solar Alliance, both countries can work toward innovative solutions for future energy needs,” he said during the interview. This is the PM’s third visit to Saudi Arabia after 2016 and 2019 and is significant because this is the first visit by an Indian prime minister to Jeddah in four decades. Jeddah was the port for trade between India and Saudi Arabia and it is also a gateway for pilgrims coming for Umrah and Hajj to Mecca.
