India's Strategic Shift to UAE Ports for Energy Security Amid Hormuz Risks

Livemint - Economy · 16 Jul 2026 · 2 min read
Prelims · International relations Mains · GS2 International relations High relevance

India is increasingly using UAE ports like Fujairah and Khor Fakkan to bypass the risky Strait of Hormuz for energy imports, crucial for its energy security as the world's third-largest energy buyer importing 90% of its crude oil.

Key points

Fujairah and Khor Fakkan ports in UAE are now critical for India's energy imports, providing an alternative to the Strait of Hormuz, which has become a hotspot due to US-Iran tensions.

India imports 60% of its crude oil, 54% of LNG, and 90% of LPG from West Asia, traditionally routed through the Strait of Hormuz, now deemed high-risk due to escalating conflicts.

Habshan-Fujairah pipeline (406km) is being utilized by Indian refiners as a strategic bypass to the Strait of Hormuz, enhancing energy supply security.

[GS3-Economy] The shift to UAE ports increases logistical costs but ensures uninterrupted energy supply, vital for India's economic stability and growth.

UAE's role extends beyond its own exports; it also routes energy supplies from Qatar and other West Asian countries to India, leveraging its strategic location.

India-UAE Comprehensive Economic Partnership Agreement (CEPA) (2023) has strengthened bilateral trade, crossing $100 billion, with UAE being a key oil supplier and investor in India's strategic petroleum reserves.

The UAE is considering expanding Fujairah port terminals to facilitate smoother energy exports, which would further bolster India's energy security.

[GS2-International Relations] Iran's threat to target alternative routes like UAE's Fujairah pipeline underscores the geopolitical risks India faces in securing energy supplies.

Way Forward: India should diversify energy sources beyond West Asia, invest in strategic petroleum reserves, and enhance maritime security partnerships with UAE and Oman to safeguard supply routes.

Key terms

Strait of Hormuz

A critical maritime chokepoint between the Persian Gulf and the Gulf of Oman, through which a third of the world's LNG and 25% of global oil consumption passes. Its strategic importance for India lies in its dependence on West Asian oil and gas, making it vulnerable to regional conflicts.

Comprehensive Economic Partnership Agreement (CEPA)

A free trade agreement between India and UAE signed in 2023, aimed at boosting bilateral trade and investment. It covers goods, services, and investments, and is pivotal for India's energy security and economic ties with the Gulf region.

Habshan-Fujairah pipeline

A 406km strategic oil pipeline in the UAE that bypasses the Strait of Hormuz, transporting crude oil from Habshan to Fujairah port. It is a key alternative route for India to secure energy supplies amid regional instability.

Strategic Petroleum Reserves (SPRs)

Stockpiles of crude oil maintained by countries to mitigate supply disruptions. India's SPRs, with UAE as a key partner, are crucial for energy security, ensuring buffer stocks during geopolitical crises or supply shocks.