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 213.2 MMT petroleum products and 60,747 MMSCM 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 4.2% during 2017 - 2040, though the projected oil demand will be much lower as compared to the US and China.
- 230 billion-barrel O+OEG conventional hydrocarbons in over 3 mn sq.km area, spread over 26 sedimentary basins, is available for investors
- India aims to reduce oil and gas imports dependence by 10% by 2022
- The demand for petroleum products is estimated to reach 244.960 MT by 2021-22 at a CAGR of 10%
- The total number of fuel retail outlets increased from 18,848 (2002) to 64,624 (2019) at a CAGR of 7.5%. State-owned marketing companies are planning to add 78,000 new fuel retail outlets.
- Present share of natural gas in the energy mix of the country is 6%. The aim is to increase it to 15% by 2030
- 12 Biofuel refineries are planned to be opened with an investment of $1.5 bn
- India is the 2nd largest consumer of Biogas with 5000 CBG plants to be opened by 2023 under the SATAT scheme
- Ethanol blending in petrol will grow from 5% to 20% by 2030 in India
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
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Gas Consumption CAGR (2014-19)
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Oil Consumption CAGR (2014-19)
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Petrochemical Industry CAGR (by 2022)
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Fuel RO CAGR (2002-19)

Largest exporter of petroleum products in Asia

Second largest refiner in Asia

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

- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
India has emerged as a refinery hub and plans to increase refining capacity to 400 MMTPA by 2025.
India's current refining capacity stands at 249 MMTPA, 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 80.7 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 12,672 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 150 MMT during April - October 2019-20.
Cumulative crude oil production during April - October 2020 was 19,110 TMT. Natural Gas production for April - October 2020 was 18,646 TMT.
In the month of December 2020 more than 4.64 lakh new LPG connections were issued and total number of connections released in the current financial year are nearly 63.58 lakhs as on 1 December 2020.
Liquefied Natural Gas (LNG) supply is forging ahead on both coasts, with 8 new R-LNG terminals (4 on the west and 4 on the east coast) coming up. Together with the six existing terminals, overall capacity will reach 74 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
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
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

