BRICS leaders gathered in New Delhi on 12–13 September as Brent crude surged past $100 a barrel, placing energy security firmly back at the centre of the global economy, Dheeraj Kumar of FirstPost reported.

Brent futures touched $102.07 on Thursday, driven by the Iran conflict and attacks on maritime shipping that disrupted flows through the Strait of Hormuz.

This waterway has historically carried nearly one-fifth of global oil and gas supplies, making any prolonged disruption a severe risk for Asian importers.

India, one of the world’s largest oil importers, faces particular vulnerability. Higher crude prices, freight costs and shipping disruptions directly impact its economy.

The timing is critical, as New Delhi has been working to build greater resilience into its energy system. This shock has therefore added urgency to India’s push for diversified energy security.

The BRICS grouping now has a significant energy dimension. The 11-member bloc includes major producers such as Russia, Iran, Saudi Arabia and the UAE, alongside large consumers like India and China.

Brazil also contributes as a notable oil producer. Collectively, BRICS accounts for 49.5 per cent of the global population, 40 per cent of global GDP and 26 per cent of global trade, according to Indian government figures.

The potential is evident. BRICS members possess producers, consumers, ports, refineries, financial institutions, energy companies and technological capabilities. The challenge lies in connecting these assets into a practical energy-security network.

The current oil shock has exposed the weakness of assuming that having producers within BRICS automatically guarantees security. Energy trade remains shaped by commercial interests, contracts, geopolitics and infrastructure, not by a BRICS label.

Gauri Jauhar, Executive Director at S&P Global Energy, emphasised that the greater opportunity lies in cooperation among companies rather than attempting to coordinate energy trade as a bloc. She noted that BRICS firms could share best practices across the energy value chain, incentivising new supplies while ensuring safety and reliability.

This cooperation could extend to technology, artificial intelligence and commercial frameworks that improve supply economics and demand efficiency. Jauhar cited India’s codification of international best practices as an example that has clarified industry standards and supported contract dispute resolution.

Subba Rao Pavuluri, president of the Satellite Industry Association-India, highlighted that BRICS cooperation could deepen through technology, investment and financial transfers. He stressed that energy security now depends not only on crude but also on grids, storage, transport infrastructure, digital systems and cross-border technology flows. India has already advanced this agenda during its 2026 chairship.

At the BRICS Energy Ministers’ Meeting in Gurugram in June, ministers prioritised energy security and sustainability, access and equity, and technology and innovation. The agenda covered diversified sources, critical minerals, supply-chain resilience, grid modernisation, energy storage, hydrogen, digitalisation and AI.

A concrete outcome was the launch of the BRICS Digital Centre of Excellence for Smart Grids and Energy Storage, designed to support knowledge sharing, regulatory exchange and pilot projects.

The Strait of Hormuz crisis has underscored that energy security cannot stop at production. A serious BRICS framework would need to include cooperation on ports, pipelines, shipping routes, storage facilities and emergency logistics.

Coordination on refining capacity and long-term investments could reduce vulnerabilities tied to single suppliers or transport corridors.

The BRICS Energy Cooperation Roadmap 2025–2030, adopted under Brazil’s presidency, already seeks deeper collaboration on security, trade, infrastructure and technology, while addressing the transition to lower-carbon systems. India’s 2026 energy track has built on this, pursuing “Energy for All” while balancing security, affordability, sustainability and innovation.

For India, strategic storage remains vital. The country currently has 5.33 million tons of crude storage at Visakhapatnam, Mangaluru and Padur under Phase I. Approval has been granted for another 6.5 million tons of underground storage at Chandikhol in Odisha and Padur in Karnataka under Phase II. 

Converted, this equates to approximately ₹3,990 crores worth of crude capacity in Phase I and about ₹4,865 crores in Phase II.

A coordinated BRICS approach to emergency stocks could theoretically strengthen resilience, but differences in import needs, production levels, reserve policies and strategic priorities make this difficult. Unlike OPEC, BRICS does not set production targets or allocate supplies. 

It functions through consensus and voluntary cooperation, meaning stronger coordination is more realistic than a formal energy alliance.

The New Delhi Declaration 2026 also reaffirmed the peaceful use of space systems and technologies, signalling that BRICS cooperation extends beyond energy into broader technological and strategic domains.

This reflects the bloc’s ambition to integrate energy, digital and space capabilities into a wider framework of resilience and innovation.

Agencies