Snapshot

World’s fastest-growing energy market

India is the 3rd largest energy and oil consumer in the world after China and the US. Oil and gas occupied approximately 35% share in India’s energy consumption.

India is the fourth largest importer of liquefied natural gas (LNG) after Japan, South Korea, and China, accounting for 7.4% of the total global trade.

Import of crude oil during April-November 2017 stood at 144.7 MMT valued at approximately $ 51.1 bn, marking an increase of 9.31% in quantity terms and 15.3% in value terms compared to the same period of last year. While, imports of petroleum products during April-November 2017 were 23.76 MMT valued at approximately $ 7.9 bn, which shows a decrease of 4.91% in quantity terms but an increase of 21% in value terms compared to the corresponding period of previous year.

  •  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 77 % to 67% by 2022
  •  Gas production will likely touch 90 bn cubic meters by 2040

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 247.5 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 69.2 MMTPA. Top three companies – IOC, Bharat Petroleum Corporation (BPCL) and Reliance Industries (RIL) - contribute around 65.5% of India's total refining capacity.

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, 243.6 MMT during 2016-17 and is expected to reach 254.4 during 2017-18. While, consumption of petroleum products stood at 184.7 MMT in 2015-16, 194.6 MMT in 2016-17 and is expected to be 204.9 MMT in 2017-18.

The production of crude oil stood at 36.9 MMT during 2015-16, 36 MMT during 2016-17 and is expected to be 37.4 in 2017-18.

Growth Drivers

  • International energy outlook 2016

    By 2040, India and China to account for half of the global energy demand

  • Government promotes clean cooking fuel

    100 mn new LPG connections  to be added between 2017 and 2018

  • Robust domestic market

    Oil consumption expected to rise by 42.5% during 2010-20

  • Abundant raw material

    Oil reserves = 600MMT & reserves of natural gas = 1.2 tcm in 2016

  • Favorable policies

    NELP, HELP, CBM & OALP to promote investments

  • 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…

Investible Projects

Investment Opportunities in Oil & Gas

  • Projects

    13

  • Opportunity

    $4.1 bn

  • Promoters

    10

  • District

    12

  • Private Projects

    1

  • Govt. Projects

    12

open

$1.5 bn

Refinery Project [Cuddalore]

State (s) Tamil Nadu
open

$705.3 mn

Ennore Petrochemical Cluster Project [Chennai]

State (s) Tamil Nadu
open

$705.3 mn

Kakinada Petrochemical Cluster Project [East Godavari]

State (s) Andhra Pradesh
open

$705.3 mn

Mangalore Petrochemical Cluster Project [Dakshin Kannada]

State (s) Karnataka

Major Investors

Data on Map

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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