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

  • %

    Gas Consumption CAGR (2014-19)

  • %

    Oil Consumption CAGR (2014-19)

  • %

    Petrochemical Industry CAGR (by 2022)

  • %

    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

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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 233 MMT during 2020-21. 

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

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FAQs

Frequently
Asked Questions

What is EPP or Export Parity Price?

Export Parity Price is the price which oil companies would realize on export of petroleum products. This includes Freight on Board (FOB) Price and advance license benefit (for duty free import of crude oil pursuant to export of refined products.

For more information, click here.

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What do you mean by import parity price?

Import Parity Price (IPP) is the price that importers would pay in case of actual import of product at the respective Indian ports. This includes FOB price, Ocean freight, Customs duty, Port dues etc.

For more information, click here

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What are biofuels?

The National Policy on Biofuels categorises Biofuels as:

“Basic Biofuels” viz. First Generation (1G) bioethanol & biodiesel and “Advanced Biofuels” – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio CNG etc.

For more information, click here.

 

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What are various types of petrol/ diesel available in India?

Various petrol types are as follows: MS 93/95, Bharat Stage (BS) IV, Bharat Stage (BS) VI, branded petrol (with additives) etc.

Various types of diesels are as follows: Light Diesel Oil (LDO), BS IV, BS VI, Bio Diesel, Branded Diesel (with additives) etc.

To know more about the Oil & Gas sector opportunity in India, please visit the Oil & Gas page at Invest India website.

For further details on Indian Petroleum and Natural Gas Statistics, please refer this link: http://petroleum.nic.in/sites/default/files/APR_E_1718.pdf

For more information, click here.

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Under what situations IGST is applicable?

As per the GST law, if the location of the supplier and place of supply is in different states then IGST would be applicable.

For more information, click here

 

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