Saudi Arabia and India to boost energy ties with new refinery projects

JEDDAH, April 25, 2025 – Saudi Arabia and India have agreed to set up two oil refineries in India and expand cooperation across petrochemicals, electricity and renewable energy, according to a joint statement released on Wednesday and reported by Bloomberg.

The announcement followed a meeting between Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi at Al Salam Royal Palace in Jeddah on Tuesday evening. Both leaders also reaffirmed their commitment to complete negotiations on a bilateral investment treaty “at the earliest” and to enhance collaboration in defence, tourism and culture.

“Deeper ties will bolster stability and energy security for both countries,” the statement said, although it provided little detail on specific projects.

Saudi Arabia’s state-owned Saudi Aramco, which has long sought a stake in India’s refining sector according to Bloomberg’s report, was not mentioned in the communications, leaving its involvement in the refinery projects unclear.

The two nations also pledged to work together on the supply of crude and liquefied petroleum gas and collaborate on India’s strategic oil reserve programme.

Saudi Arabia, historically India’s largest oil supplier, has seen its share of the Indian market decline as imports from Russia and Iraq have grown.

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