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Snapshot
World’s fastest-growing energy market
India is the 3rd largest energy and oil consumer in the world
India is the 4th largest importer of liquefied natural gas (LNG).
India consumed 204.23 MMT petroleum products and 63.9 BCM natural gas in FY 2021-22, making a growth of 5.1% and 5% over the FY 2020-21. India’s oil demand is projected to rise 50% to 7.2 MBD in 2030 from 4.8 mbd in 2019 as against a global expansion of 7%. India’s natural gas demand is projected to double to 133 BCM in 2030 from 64 BCM in 2019 as against a 12% rise in global gas demand.
- The conventional hydrocarbon resources in India are currently estimated at approx. 42 BMT of Oil & Oil Equivalent of Gas (O+OEG), spread over 26 sedimentry basins covering an area of 3.36 mn sq. km
- The total number of fuel retail outlets increased from 45,104 (2012) to 83,027 (2022). This number has increased to 84,614 as of October 2022
- India has set a target to raise the share of natural gas in the energy mix to 15% by 2030 from about 6.7% now
- Target of setting up 12 Commercial Scale 2G Bio-Ethanol Projects with Viability Gap Funding of up to INR 150 Cr 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
- India increased the ethanol blending in petrol from 1.53% in 2013-14 to 10.17% in 2022 and advanced its target of 20% ethanol blending in petrol from 2030 to 2025-26
- A total of 88% of the nation’s geographical area covering 98% of the population has been authorized for the development of City Gas Distribution network
100% FDI allowed through automated route in exploration & production activity, LNG regasification infrastructure, and refining in the private sector
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 under the automatic route is allowed in case an 'in-principle' approval for strategic disinvestment of a PSU has been granted by the Government
Approval for strategic disinvestment of a PSU has been granted by the Government
100% FDI allowed in infrastructure related to marketing of petroleum products and natural gas, petroleum product & natural gas pipelines, LNG regasification infrastructure, market study and formulation and petroleum refining in private sector.
For further details, please refer FDI Policy
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Gas Consumption CAGR (2015-16 to 2021-22)
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Petroleum Product Consumption CAGR (2015-16 to 2021-22)
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Number of Petroleum Product Retail Outlets CAGR (2012 to 2022)
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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 plans to almost double its oil refining capacity to 450 MT in the next 10 years to meet the rising domestic fuel demand as well as cater to export market.
India's refining capacity stands at about 251.2 MMTPA as on April 2022, comprising 23 refineries—19 under the public sector, 3 under the private sector, and 1 in a joint venture. Refinery capacity utilization is about 96% for the year 2021-22. Indian Oil Corporation (IOC) is the largest domestic refiner with a capacity of 70.1 MMTPA.
The total refining capacity is planned to increase by the CAGR of 2.5 % in the next 5 years, to reach 283.62 MMTPA.
Crude oil processing increased by 9% from 221.77 MMT in 2020-21 to 241.7 MMT in 2021-22.
One Nation One Gas Grid: A total of 22,306 km of the natural gas pipeline is operational and about 13,029 km of gas pipelines are under construction as on June 2022, as part of the Gas Grid. India targets increasing the pipeline coverage by ~54% to 34,500 km by 2024-25. All states are intended to be connected by a trunk national pipeline network by 2027. As on 30th September 2022, 221 Geographical Areas have been operationalized for the supply of CNG.
Petroleum product production saw an increase of 8.9% in FY 2021-22 vis-à-vis FY 2020-21. The production of petroleum products stood at 254.3 MMT in FY 2021-22.
Cumulative crude oil production during FY 21-22 was 29.7 MMT. Natural Gas production for FY 21-22 was 34.024 BCM.
Petroleum Refinery production (weight: 28.04 %) increased by 3.7 % in December 2022 over December 2021. Its cumulative index increased by 5.5 % during April to December 2022 over the corresponding period of previous year. Natural Gas production (weight: 6.88 %) increased by 2.6 % in December 2022 over December 2021. Its cumulative index increased by 0.9 % during April to December 2022 over the corresponding period of previous year.
Export of petroleum products increased by 107.47% from $ 21.4 Bn in the FY 2020-21 to $ 44.4 Bn in the FY 2021-22. Further, Exports of petroleum products in April – December 2022 were $ 70.28 bn registering a growth of 52.15% over $ 46.19 bn in April – December 2021.
OMCs have taken several steps to encourage better consumption of LPG and reduce diversion and delay in supplies. There are 3123 lakh active domestic customers of LPG as on October 2022.
Liquefied Natural Gas (LNG) supply is forging ahead on both coasts with 06 operational LNG terminals. Total capacity of LNG terminals stands at 42.7 MMTPA.
GROWTH DRIVERS
India's energy demand
BP estimates that India's energy demand will double, while natural gas demand is expected to grow five-fold by 2050
City Gas Distribution
Coverage area has gone up from 20% to 88%
Abundant raw material
Natural Gas Reserve at 1.37 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 respectively
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
MoEFCC's gazette notification dated 16.01.2020
Stipulates that seismic survey do not require prior Environmental clearance, provided the concession areas has got previous clearance for physical survey. Further, all project in respect of offshore and onshore oil and gas exploration are categorized as ‘B2’ projects” i.e., will not require an Environment Impact Assessment report
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
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