Shale
Recoverable shale gas resources of nearly 96 tn cubic feet
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)
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
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 demandGovernment promotes clean cooking fuel
100 mn new LPG connections to be added between 2017 and 2018Robust domestic market
Oil consumption expected to rise by 42.5% during 2010-20Abundant raw material
Oil reserves equal 600 MMT and reserves of natural gas equal 1.2 TMC in 2016Favorable policies
NELP, HELP, CBM and OALP to promote investments
Recent Announcements
UAE state oil giant ADNOC plans to invest $ 45 bn in a downstream expansion
RIKA Biofuels to invest $ 100-150 mn to build Bio CNG plants in Punjab
India is likely to attract investments worth over $ 40 bn in the next five years in the oil and gas sector alone as several global oil companies like Saudi Aramco, BP Plc., Vedanta Resources and Total of France have shown interest in investing in world's fastest growing market
Underground coal gasification
One of the end uses under the government’s captive mining policy
Pipeline transportations
35% of product movement over pipelines
The refining sector
Refining hub with 23 refineries with expansions planned in export-oriented infra
E&P services and equipment companies
48% of the country’s sedimentary area is yet to be explored
Investible Projects
Investment Opportunities in Oil & Gas
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Projects
15
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Opportunity
$4.8 bn
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Promoters
9
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District
13
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Private Projects
1
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Govt. Projects
14
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.
