Snapshot

World’s fastest-growing energy market

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.

  • The demand for petroleum products is estimated to reach 244,960 MT by 2021-22
  • India aims to reduce oil and gas imports dependence from 82% to 67% by 2022
  • The total number of fuel retail outlets increased from 18,848 (2002) to 64,624 (2019) at a CAGR of 7.5%
  • Conventional hydrocarbon resources in 26 sedimentary basins of the country are of the order of 41.87 bn tones (oil and oil equivalent of gas)

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

  • 7.4 %

    India's share in LNG imports

  • 3.3 %

    Oil consumption CAGR (2008-17)

  • 2.3 %

    Gas consumption CAGR (2007-16)

  • 4.9 %

    LPG sales growth (2016-17)

A

Largest exporter of petroleum products in Asia

B

Second largest refiner in Asia

C

Third largest consumer of crude oil and petroleum products in the world

Industry Scenario

India has emerged as a refinery hub.

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

Growth Drivers

  • Strategic Petroleum Reserves Program

    It envisions creation of additional crude oil reserves facilities in PPP mode
  • City Gas Distribution

    Coverage area has gone up from 20% to 70%
  • Abundant raw material

    Oil reserves equal 604 MMT and natural gas reserves equal 1.2 TCM
  • Favorable policies

    HELP, CBM and OALP to promote investments
  • Government incentives

    Early production royalty concession of 10%, 20% and 30% for Category I, II and III basins
  • Open

    Coalbed Methane (CBM) policy

    This policy specifies the modality for taking up commercial…

  • Open

    Discovered Small Fields Policy

    The policy offers improved fiscal terms such as no oil cess…

  • Open

    Hydrocarbon Exploration & Licensing…

    This policy allows an open acreage licensing, full freedom f…

  • Open

    New Exploration Licensing Policy (NELP)

    The main objective of the policy is to attract significant r…

  • Open

    Policy Framework to Promote and Incentiv…

    To provide fiscal incentives to adopt Enhanced Recovery (ER)…

  • Open

    Policy Reforms in Exploration of Oil and…

    To increase exploration activities, attract domestic and for…

Investible Projects

Investment Opportunities in Oil & Gas

  • Projects

    10

  • Opportunity

    $2.57 bn

  • Promoters

    5

  • District

    7

  • Private Projects

    1

  • Govt. Projects

    9

open

$655.76 mn

Ennore Petrochemical Cluster Project [Chennai]

State (s) Tamil Nadu
open

$655.76 mn

Kakinada Petrochemical Cluster Project [East Godavari]

State (s) Andhra Pradesh
open

$655.76 mn

Mangalore Petrochemical Cluster Project [Dakshin Kannada]

State (s) Karnataka
open

$390.27 mn

Floating Storage & Regasification Unit Project [Mumbai]

State (s) Maharashtra

Major Investors

Data on Map

  • Oil Refineries in India

Latest in Oil & Gas

FAQ

Frequently
Asked Questions

  • Can you broadly elaborate on mode of utilization and sector specific use of furnace oil /LSHS and LDO?

    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.

  • What is Motor Spirit (MS)?

    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.

  • What do Refinery Gate Price/Refinery Transfer Price (RGP/ RTP) signify?

    This is the price paid by the Oil Marketing Companies to domestic refineries for purchase of finished petroleum products at refinery gate.

  • Whether TIN number under VAT would be abolished? What will be the rate of GST on 5 KG FT cylinder?

    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%.

  • What is the Ethanol Blended Petrol?

    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.

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