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Snapshot
World’s fastest-growing energy market
India is the third 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 213.13 MMT petroleum products and 64.14 BCM natural gas in FY 2019-20, marking a growth of 0.4% and 5.5% over the FY 2018-19 consumption levels. India’s oil demand rises by almost 4 mb/d to reach 8.7 mb/d in 2040, the largest increase of any country.
- India has 26 sedimentary basins covering an area of 3.36 Mn sq. km.
- India aims to reduce oil and gas imports dependence by 10% by 2022
- The total number of fuel retail outlets increased from 18,848 (2002) to 77,094 (2021) at a CAGR of 7.7%. This number has increased to 81,099 as of Jan 2022.
- India is working to become a gas based economy by increasing the share of naturalbgas in India’s energy mix from 6.3 % to 15% by 2030.
- Target of setting up 12 Commercial Scale 2G Bio-Ethanol Projects with Viability Gap Funding of up to INR 150 Cr per per project under the Pradhan Mantri Ji-VAN Yojana.
- Target of setting up 5000 Compressed Biogas (CBG) units under the Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme
- Target of achieving 20% ethanol blending in petrol by 2025
- Petroleum Refinery production (weight: 28.04 percent) increased by 9.2 percent in April 2022 over April 2021. Its cumulative index increased by 8.9 percent during April to March 2021-22 over the corresponding period of previous year.
- Natural Gas production (weight: 6.88 percent) increased by 6.4 percent in April 2022 over April 2021. Its cumulative index increased by 19.2 percent during April to March 2021-22 over the corresponding period of previous year.
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
100% FDI allowed in infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products, petroleum product pipelines, natural gas/ pipelines, LNG regasification infrastructure, market study and formulation and petroleum refining in private sector.
100% FDI allowed in Strategic disinvestment of a PSU with 'in-principle' approval granted by the Government via automatic route
For further details, please refer FDI Policy
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Gas Consumption CAGR (2015-20)
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Oil Consumption CAGR (2015-20)
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Fuel RO CAGR (2002-19)
Explore Related Sub Sectors
Natural Gas, Transportation & StorageDiscover More
Largest exporter of petroleum products in Asia since 2009 (FY 20-21)
Second largest refiner in Asia (FY 20-21)
Third largest energy consumer in the world (FY 20-21)
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
India's current refining capacity stands at 249 MMTPA, comprising of 23 refineries—19 under public sector, 3 under private sector and 1 in a joint venture. Indian Oil Corporation (IOC) is the largest domestic refiner with a capacity of 80.5 MMTPA.
One Nation One Gas Grid: A total of 21735 Kms of pipelines have been laid up to September, 2021 as part of the Gas Grid. India targets increasing the pipeline coverage by ~60% by 34,500km by 2024-25. All states are targeted to be connected by a trunk national pipeline network by 2027.
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 250 MMT in 2021 vs 236 MMT in 2020, i.e. a 5.9% YoY growth. The consumption of petroleum products stood at 201 MMT in 2021 vs 194 MMT in 2020, i.e. a 3.6% YoY growth.
Exports of Petroleum products values at $ 8547.64 mn in May 2022 and records positive growth vis-à-vis May 2021 of 60.87%. The Average Index of Industrial Production of Manufacturing of coal and refined petroleum products in the FY 2021-22 is 121.1 and has grown by 8.9 percent.
OMCs have taken several steps to encourage better consumption of LPG and reduce diversion and delay in supplies. 141.15 lakh new domestic customers were enrolled by PSU OMCs from April 2021 - to December 2021.
Liquefied Natural Gas (LNG) supply is forging ahead on both coasts with 5 new LNG Terminals and 1 expansion project under construction - 3 on the west coast and 2 on the east coast. Together with the projects under construction, overall capacity will reach 62.5 MMTPA.
GROWTH DRIVERS
Investments worth $118 bn by 2024
$58 bn will be invested in E&P by 2023 and $60 bn will be invested in natural gas infrastructure by 2024
City Gas Distribution
Coverage area has gone up from 20% to 70%
Abundant raw material
Natural Gas Reserve at 1.3 TCM
Favorable policies
National Data Repository (NDR), Discovered Small Field Policy (DSF),Marketing and Pricing freedom for natural gas, National Seismic Programme (NSP) of unappraised areas Planned 2D Seismic Survey for 48K LKM
Government incentives
Early production royalty concession of 10%, 20% and 30% for Category I, II and III basins
Setting up LNG stations
Any entity can set up LNG stations in any Geographical Area in India even if they do not have a City Gas Distribution license
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
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