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 204.92 MMT petroleum products and 58.64 BCM 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% during 2016 - 2030 against the world average of 1%, though the projected oil demand will be much lower as compared to the US and China.
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
India's share in LNG imports
Oil consumption CAGR (2008-17)
Gas consumption CAGR (2007-16)
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
India's current refining capacity stands at 257.2* 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 71.8* 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 14,239 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 231.9 MMT during 2015-16 to 262.3 MMT in 2017-18.
Liquefied Natural Gas (LNG) supply is forging ahead on both coasts with 10 new R-LNG terminals (5 on west and 5 on east coast) coming up. Together with the four existing terminals of capacity 26.3 MMTPA, overall capacity will reach 72.5 MMTPA.
*provisional
UAE's ADNOC and Indian Oil Corporation have signed a long term sales agreement for ADNOC's high quality base oil ADbase which will be used for manufacture of engine oils for the automotive sector.
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
Recoverable shale gas resources of nearly 96 tn cubic feet
One of the end uses under the government’s captive mining policy
35% of product movement over pipelines
Refining hub with 23 refineries with expansions planned in export-oriented infra
48% of the country’s sedimentary area is yet to be explored
Summit on Global Chemicals & Petrochemica…
24th World Energy Congress 2019
Global Energy XPO, New Delhi, 20-22 November…
India Surging Ahead - 2019
Setting up Business in India
Since lube is supplied at free of cost (therefore no consideration involved), it would not be treated as supply (as per section 7 of CGST Act, 2017) under GST and hence, not leviable to GST. However, input tax credit of GST paid on such lube at the time of purchase is required to be reversed u/s 17(5)(h) of CGST Act, 2017.
Export Parity Price represents the price which oil companies would realize on export of petroleum products. This includes FOB Price and advance license benefit (for duty free import of crude oil pursuant to export of refined products.
IPP represents the price that importers would pay in case of actual import of product at the respective Indian ports. This includes FOB Price, Ocean freight, Insurance, Customs duty, Port dues etc.
Bio-diesel is a fatty acid containing similar properties to petroleum diesel fuels, which can be a substitute of High Speed Diesel (HSD). MoP&NG announced a bio-diesel policy in October 2005 to encourage the production of bio-diesel. Under this policy, effected from 01.01.2006, OMCs are allowed to blend 5% of bio-diesel (B100) meeting the fuel quality as per BIS with high speed diesel. With renewed focus on Bio-fuels, the Government, on 16 January 2015, allowed direct sale of biodiesel by manufacturers/suppliers of biodiesel/their authorized dealers and Joint Ventures (JVs) of OMCs as authorized by MoP&NG to all consumers. On 10 August 2015, the Government has allowed sale of Bio-diesel (B100) by private manufacturers to bulk consumers. Also, retailing of bio-diesel blended diesel by Public.
Major difference in the grades of fuels is in terms of quantity of total sulphur present and aromatic content. For petrol, maximum permissible sulphur quantity and aromatic content (% volume) are kept at 150 (mg/kg) (ppm) and 42% respectively for BS-III whereas 50 mg/kg (ppm) and 35% respectively for BS IV. In HSD, quantity of maximum permissible sulphur in BS III types is maintained at 350 mg/kg (ppm) and 50 mg/kg (ppm) for BS IV.
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Sanchi Padia
By: Preet Deep Singh
By: Anusha Agarwal
