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.
- Bharat Petroleum estimates that India's energy demand will double, while natural gas demand is expected to grow five-fold by 2050.
- As on April 2022, estimated reserves of crude oil in India stood at 651.77 mn tonnes, and natural gas stood at 1138.67 bn cubic meters.
- 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.
- 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.
- 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. Further, Ethanol blending with Petrol was 12.0% during February 2023 and cumulative ethanol blending during December 2022- February 2023 was 11.4%.
- 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. In this regard, as of 01.03.2023, 4215 LOIs have been issued. Under waste-to-energy program, GoI provides financial assistance to bio-gas plants.
For further details, please refer FDI Policy
Decreasing Kerosene consumption CAGR (2012-13 to 2021-22)
Electricity Consumption CAGR (2021-22)
Availability of Petroleum products CAGR (2012-13 to 2021-22)
Largest exporter of petroleum products in Asia since 2009 (FY 20-21)
Fourth largest global refiner
Third largest energy consumer in the world
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Exploration & Production:
- There are 26 sedimentary basins, covering a total area of 3.4 Mn square km. The area is spread across the land, shallow water up to 400-meter water depth, and Deepwater further up to Exclusive Economic Zone (EEZ).
- Cumulative crude oil production during FY 21-22 was 29.7 MMT. Natural Gas production for FY 21-22 was 34.024 BCM.
- In the FY 2021 – 22, for 21 & 8 Blocks were awarded under OALP VI & VII respectively.
- It is intended to increase the nation's exploration acreage by 0.5 Mn sq km till 2025 and by 1.0 Mn sq km till 2030.
- India‘s refining capacity stands at 253.92 MMTPA as of July 2023, comprising 23 refineries. 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.
- Crude oil processing increased by 9% from 221.77 MMT in 2020-21 to 241.7 MMT in 2021-22.
- 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.
- India aims to increase its refining capacity to 450 MMTPA by 2030.
Natural Gas Infrastructure:
- A total of 22,335 km of the natural gas pipeline is operational and about 12,995 km of the gas pipeline is under construction as of December 2022.
- Target to increase the pipeline coverage by ~54% to 34,500 km by 2024-25 and to connect all the states with the trunk natural gas pipeline network by 2027.
- As on 31.01.2023, 10.5 Mn domestic PNG connections and 5,118 CNG stations have been established.
- As per Minimum Work Programme, the authorized CGD entities authorized have to provide 123.3 Mn PNG connections and establish 17,700 CNG stations by 2030.
- Liquefied Natural Gas (LNG) supply is forging ahead on both coasts with 06 operational LNG terminals. The total capacity of LNG terminals stands at 42.7 MMTPA.
Import & Export:
- India imported 232.4 MMT of crude oil for $158.3 Bn during April- March 2022-23 as compared to an import of 212.4 MMT for $120.7 Bn during April-March 2021-22. Import dependency in case of crude oil during Apr-Mar 2022-23 was 87.3% as compared to 85.5% during the corresponding period of last year.
- Export of petroleum products increased by more than 100% 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.
Petroleum Products Consumption:
- The Overall consumption of Petroleum products in the nation saw an increment of 38% to reach 204.7 MMT in FY 21-22 from 148.1 MMT in FY 11-12. The major product-wise breakdown of the same are as follows:
- The LPG consumption increased by 85% from 15.3 MMT in FY 11-12 to 28.3 MMT in FY 21-22. As on 01.03.2023, there are 314 Mn active LPG domestic connections by PSUs.
- The Motor Spirit consumption doubled from 15 MMT in FY 11-12 to reach to 30.8 MMT in FY 21-22.
- The HSD consumption increased from 64.7 MMT in FY 11-12 to 76.7 MMT in FY 21-22.
Union Budget 2023 Highlights
- INR 35,000 Cr for priority capital investments towards energy transition and net zero objectives, and energy security
- INR 10,000 Cr for compressed bio-gas plants and 300 community and cluster-based biogas plants.
India's energy demand
Expected to grow at about 3% per annum by 2040, compared to the global rate of 1%. Further, 25% of the global energy growth between 2020 and 2040 is envisaged to come from India due to the fast-growing economy and demographic dividend
Unified tariff for natural gas pipelines and review of domestic gas pricing
Unified tariff aims to benefit the consumers located in the areas where currently the additive tariff is applicable, facilitating the development of gas markets. Domestic Natural Gas Price shall be 10% of the Indian Crude Basket Price. Further, for the gas produced from nomination fields, the price shall be subject to a floor ($4/MMBTU) and a ceiling ($6.5/MMBTU)
Reduction in the ‘No Go'
Area by 99%, thereby making available an additional approx. 1 Mn Sq.km. of India's EEZ for exploration
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
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.
Investment Opportunities in Oil & Gas
Data on Map
Frequently VIEW ALL
Invest India closely works with
Government Ministry/ Department
New India Timeline @2047
IOC plans to increase the storage intake to 54,000 Kilolitres from the existing... Visit Page
Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity