India-Saudi Arabia Collaboration on Oil Refineries and Energy Stability
India and Saudi Arabia have reinforced their commitment to enhancing global oil market stability through significant collaborations, as outlined in a recent joint statement.
Key Agreements
- Establishment of Refineries:
- Decision to establish two new refineries in India.
- Part of Saudi Arabia's commitment to invest $100 billion in India across various sectors.
- Oil Market Stability:
- Enhanced cooperation in crude oil and derivatives supply, such as LPG.
- Saudi crude constitutes 14.3% of India's total imports; Saudi is the third biggest LPG supplier to India.
Strategic Initiatives
- Refinery Project Details:
- Saudi Aramco's interest in the West Coast Refinery in Maharashtra, initially a $44 billion project for 60 MMTPA capacity.
- Consideration of smaller refineries with approximately 20 MMTPA capacity.
- Joint High-Level Task Force:
- Focus on energy, petrochemicals, infrastructure, technology, and digital infrastructure.
- Negotiations on the Bilateral Investment Treaty and progress in taxation.
Development Areas
- Supply Chain Development: Collaboration on supply chains and energy sector projects.
- Strategic Reserve Program: Involvement in India’s Strategic Reserve Program.
- Green Hydrogen Initiative:
- Joint stimulation of demand and development of hydrogen transport and storage technologies.
- Labour and Human Resources: Exploration of collaboration opportunities, noting the presence of 2.7 million Indian nationals in Saudi Arabia.
Memorandums of Understanding (MoUs)
- On space activities for peaceful purposes between space agencies.
- On health cooperation between health ministries.
- On inward foreign surface parcel between postal departments.
- On anti-doping and prevention between anti-doping bodies.
