India is the 3rd largest energy and oil consumer in the world after China and the US.
India is the 4th largest importer of liquefied natural gas (LNG).
India consumed 204.92 MMT petroleum products and 58.64 BCM natural gas. The import dependency of crude oil and LNG during 2018 was 82.59% and 45.89% respectively. During 2018, petroleum import bill was $ 112 bn, a growth of 27% over $ 88 bn during 2017 - 18, and 23.42% of total gross import of the nation. India’s projected oil demand is going to grow at CAGR of 4% during 2016 - 2030 against the world average of 1%, though the projected oil demand will be much lower as compared to the US and China.
100% FDI allowed in exploration activities of oil and natural gas fields under automatic route
49% FDI allowed in petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs under automatic route
For further details, please refer FDI Policy
India's share in LNG imports
Oil consumption CAGR (2008-17)
Gas consumption CAGR (2007-16)
LPG sales growth (2016-17)
Largest exporter of petroleum products in Asia
Second largest refiner in Asia
Third largest consumer of crude oil and petroleum products in the world
India's current refining capacity stands at 257.2* MMPTA, comprising of 23 refineries—18 under public sector, 3 under private sector and 2 in a joint venture. Indian Oil Corporation (IOC) is the largest domestic refiner with a capacity of 71.8* MMTPA. Top three companies – IOC, Bharat Petroleum Corporation (BPCL) and Reliance Industries (RIL) - contribute around 66.7% of India's total refining production from FY 2018 - 19.
At present about 16,788 km natural gas pipeline is operational and about 14,239 km gas pipelines are under development.
India has witnessed a steady increase in production as well as consumption of petroleum products over the years. The production of petroleum products stood at 231.9 MMT during 2015-16 to 262.3 MMT in 2017-18.
Liquefied Natural Gas (LNG) supply is forging ahead on both coasts with 10 new R-LNG terminals (5 on west and 5 on east coast) coming up. Together with the four existing terminals of capacity 26.3 MMTPA, overall capacity will reach 72.5 MMTPA.
*provisional
UAE's ADNOC and Indian Oil Corporation have signed a long term sales agreement for ADNOC's high quality base oil ADbase which will be used for manufacture of engine oils for the automotive sector.
UAE state oil giant ADNOC plans to invest $ 45 bn in a downstream expansion
RIKA Biofuels to invest $ 100-150 mn to build Bio CNG plants in Punjab
India is likely to attract investments worth over $ 40 bn in the next five years in the oil and gas sector alone as several global oil companies like Saudi Aramco, BP Plc., Vedanta Resources and Total of France have shown interest in investing in world's fastest growing market
Recoverable shale gas resources of nearly 96 tn cubic feet
One of the end uses under the government’s captive mining policy
35% of product movement over pipelines
Refining hub with 23 refineries with expansions planned in export-oriented infra
48% of the country’s sedimentary area is yet to be explored
Major use of furnace oil (FO) /LSHS and LDO is as a fuel in Power, Fertilizer, petrochemicals and steel
sectors. Some of the fertilizer plants consume FO as feed stock also. Other industries engaged in
manufacturing of cement, paper, pharmaceuticals, Synthetic fibers etc. also consume FO/LSHS as fuels. LDO (Light Diesel Oil is broadly used for low RPM engines primarily employed in industry, transport and power sectors.
Motor spirit means any hydrocarbon oil in the range of C4-C12 (excluding crude mineral oil) obtained
broadly by fractional distillation of crude oil which meets the requirements of Bureau of Indian Standards specification (BIS) No. IS-2796 and is suitable for use as fuel in spark ignition engines. It is basically a light distillate with boiling point range at 30-210 Degree Celsius and density range of 720-775 Kg/m3 at 15 Degree Celsius.
However for further details, please refer BIS specifications, link.
This is the price paid by the Oil Marketing Companies to domestic refineries for purchase of finished petroleum products at refinery gate.
1) TIN number under VAT to the extent of 5 specified petroleum products will be continued.
2) GST Rate on on domestic supply of LPG will be 5% and for purposes other than domestic it will be 18%.
Ministry of Petroleum & Natural gas in the year 2006 directed the Oil Marketing Companies (OMCs) to sell 5% Bio Ethanol Blended petrol as per BIS specification in the entire country except the North Eastern states, Jammu & Kashmir, Andaman Nicobar islands and Lakshadweep, with effect from 1 November 2006. Currently this programme is being carried out in 21 States and 4 UTs with immediate target to achieve 10% ethanol blending in Petrol. This blended petrol is known as ethanol blended petrol.
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Sanchi Padia
By: Preet Deep Singh
By: Anusha Agarwal
