India and Saudi Arabia Eye Collaboration on Energy Security and Fertilizer Supply
India and Saudi Arabia have forged a renewed commitment in the energy sector through a Memorandum of Understanding (MoU). Rather than maintaining the traditional dynamics primarily centered around oil, the two nations are venturing into collaborative projects that encompass undersea power grid interlinks, renewable energy, and advancements in green hydrogen.
The document, endorsed by India’s Union Renewable Energy Minister RK Singh and Saudi Arabia’s Abdulaziz bin Salman Al-Saud, signifies India’s potential pivot from a predominant oil and liquefied petroleum gas (LPG) importer from Saudi Arabia, currently its third-largest oil supplier, to potentially emerging as a green energy and hydrogen exporter.
Outlined by the Ministry of New and Renewable Energy (MNRE), the bilateral treaty strives to enhance collaboration and funding in the vast energy domain. It encapsulates facets such as renewable energy, hydrogen, petroleum, energy efficiency, strategic petroleum reserves, and the all-important topic of energy security, with a pronounced emphasis on fostering bilateral investments in the sectors of renewable energy, power, hydrogen storage, and oil.
During this alliance-strengthening visit, a series of approximately 50 MoUs, valued at $3.5 billion, were inked between the two nations. Commerce and Industry Minister Piyush Goyal conveyed aspirations of elevating the current bilateral trade figure of $52 billion to a substantial $100 billion shortly. Goyal underscored the two nations’ symbiotic potential—India as a possible food security provider for Saudi Arabia, and reciprocally, Saudi Arabia augmenting India’s energy resilience through consistent oil and crucially, fertilizer supplies. This symbiosis is reflected in the trade figures, with India’s exports to Saudi Arabia witnessing a rise from $8.8 billion in 2021-22 to a projected $10.72 billion in 2022-23, and imports anticipated to ascend from $34.1 billion to $42 billion in the same timeframe.
Accompanying the Crown Prince of Saudi Arabia, Mohammed bin Salman bin Abdulaziz Al-Saud, during his state visit post the G20 summit, is an ensemble of key ministers and business magnates.
This MoU between India and Saudi Arabia delineates a pivotal juncture in their energy discourse, with a mutual vision toward leveraging renewable energy, hydrogen, and reinforcing their trade and investment ties, all while setting sights on a sustainable energy future.
