News | June 14, 2021

India, U.S. fuel agreement operational

By Connie Braesch DLA Energy Public Affairs

Strengthening military partnerships, Defense Logistics Agency Energy established a long-term fuel agreement between the U.S. Defense Department and India Ministry of Defence.

The agreement became operational June 1 and enables reciprocal fuel sales and purchases, increased Indian military participation with U.S. military exercises, and easier accounting and reporting of fuel transactions. 

“DLA’s support to the Warfighter is job one,” said DLA Energy Commander Air Force Brig. Gen. Jimmy Canlas. “This fuel agreement is a great example of how we provide smart, innovative and tailored logistics solutions to increase and sustain warfighting readiness to meet today’s challenges and prepare for the future fight.”

The new agreement was the culmination of more than three and half years of work. Prior to the fuel agreement, fuel sales were codified through short-term Logistics Exchange Memorandum of Agreement Orders. 

William Nejdl, DLA Energy International Agreement Representative for U.S. Indo-Pacific Command, said the fuel agreement with the Republic of India has strengthened our military ties and bonds.

“It reinforces the U.S. commitments to increase interoperability during exercises and contingencies by allowing both militaries to support each other,” he said.

Under the agreement, the India Ministry of Defence can receive fuel from U.S. military facilities, ships, and aircraft and U.S. warfighters can obtain the same fuel support from India MoD, improving cost, efficiency, and collaboration. 

Philip Valenti is the International Logistics Advisor for the U.S. Indo-Pacific Command Multinational Logistics Branch. He said the fuel agreement, “signals a significant deepening of the trust and cooperation between both military forces.”

“It serves as a reminder that the U.S. is a reliable, efficient, and effective partner, willing to closely work with India to meet much of their fuel needs when they operate outside of Indian territory,” Valenti added. 

Establishing an international fuel agreement is a team effort requiring both entities to closely collaborate. Newly assigned to DLA Energy International Agreements team, Tawnya Moreno said she has a new appreciation for the fuel agreement process. 

“There are a lot of people involved in the process from coordination and negotiation to reviews, signing and execution,” Moreno said. “The result is worth the wait.”

This fuel agreement with India and one recently signed with Romania in January bring the total number of DLA Energy fuel agreements with allies around the world to 40, said DLA Energy International Agreements Division Chief Mike Holgate. 

“Whether U.S. forces are conducting coalition exercises, providing humanitarian support or executing a strategic mission, DLA Energy prides itself on understanding customer requirements and anticipating future needs to ensure warfighters have reliable and efficient fuel sources across an increasingly complex global environment,” Holgate said.

DLA Energy International Agreements Programs and Analysis team members Michael MacLean and Rey Venus assisted with establishment of accounting and reporting systems for fuel transactions to include reporting the international support through the Chairman of the Joint Chief of Staff, to the U.S. Congress by utilizing the Acquisition and Cross Servicing Agreement Global Automated Tracking and Reporting System.  

DLA Energy’s International Fuel Agreements team is responsible for establishing and maintaining long-term Department of Defense fuel agreements with foreign militaries. Synchronized with DLA Energy regional offices, the team focuses on providing a global capability to meet future fuel requirements.