India-Saudi Arabia Plan Two Refineries and Energy Stability
Why in the news
After PM Modi’s short Saudi visit, cut short by the Pahalgam attack, the two countries announced refinery cooperation and joint efforts on oil market stability.
Key facts
- Refineries: two in India, part of Saudi Arabia’s $100 billion commitment covering energy, infrastructure, technology and fintech.
- Aramco’s West Coast Refinery: Maharashtra, 60 MMTPA, slow progress; plans now tilt to smaller units of about 20 MMTPA.
- Dependence: 14.3% of crude and 18% of LPG in FY2023-24.
Cooperation areas
| Area | Detail |
|---|---|
| Task force | Progress on taxation, investment, supply chains |
| Treaty | Bilateral Investment Treaty expected to be finalised soon |
| Strategic reserves | Cooperation on India’s Strategic Petroleum Reserve Programme |
| Green hydrogen | Joint ventures in hydrogen transport and storage |
| Labour | More cooperation in labour and human resources, specialised industries, novel hydrocarbon uses |
Significance
- The $100 billion also targets petrochemicals and digital infrastructure.
- Both sides stress energy security for all energy sources.
Exam angle
- Terms: MMTPA, BIT, Strategic Petroleum Reserve.
- Company: Saudi Aramco.