The country’s oil and gas sector is probably going to ascertain investment to the tune of $206 billion during the subsequent eight to 10 years.
With Prime Minister Narendra Modi addressing the highest global executives at the India Energy Forum by CERA Week on Monday, it’s expected he would further entice companies to market an cor a self-reliant India. This when the domestic fuel market is recovering from the pandemic-driven decline.
The three-day forum will see participation from Dan Brouillette (US Secretary of Energy), Prince Abdulaziz (Minister of Energy of Saudi Arabia) and Sultan Ahmed Al Jaber (CEO of Abu Dhabi National Oil Company).
“The importance of such a worldwide meet comes once you realise that the country is about to ascertain such large investment this decade. This includes investments to the tune of $67 billion in gas infrastructure — LNG capacity increase, pipelines and CGD networks. Global players like Total, Exxon Mobil and Shell have shown their interests during this field” said a government official. He indicated that putting together Reliance-BP, ONGC and Oil India, exploration and production scenario would see investment of around $59 billion. On the opposite hand, downstream segments, including marketing, refinery expansions and new refinery plans like Vizag, Barmer, Paradip and Ratnagiri may even see another $80 billion investments too within the sector.
The virtual event also will see participation from industry bigwigs like Igor Sechin (Chairman, Rosneft, Russia); Bernard Looney (CEO BP Plc, UK); Patrick Pouyanne (Chairman & CEO, Total S.A., France); Olivier Le Peuch (CEO, Schlumberger, USA); Mukesh Ambani (Chairman & MD, Reliance Industries) and Mohammad Sanusi Barkindo (Secretary General, Opec).
This is at a time when the country’s fuel sales is on a recovery track beginning with the demand contraction that happened thanks to the outbreak of pandemic and consequent lockdowns. During the primary fortnight of October 2020, the Petrol demand was up by 1.5 percent; Diesel by 8.79 percent and LPG by 6.93 percent compared to October 1-15 period of 2019. The ATF demand is 57 percent in need as of last year which suggests there’s a recovery of 43 percent. consistent with estimates, the planet’s total primary energy demand would increase at but 1 percent once a year till 2040 and this growth would be mainly supported by India and other Asia. Out of this, India’s Energy demand would grow at about three percent a year till 2040.
India has also seen increased specialise in clean energy in recent years. “The share of renewable in electricity capacity has significantly gone up now to 22 percent from around 10 percent in 2014-15. The ethanol blending percentage has risen from 0.67 percent in 2012-13 to now on the brink of 6 percent. additionally , we’ve launched schemes like Ujjwala giving access to wash energy for commoner , BS VI fuel was launched and also Hydrogen-CNG also became a neighborhood of our fuel basket,” he said