As of March, 2020, the oil refining capacity of India stood at 249.4 million tonnes, making it the second largest refiner in Asia. As of April, 2019, India had a network of 10,419 km of crude pipeline having a capacity of 145.6 mmtpa.
Oil Industry Size
India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally. Private companies own about 35.36 per cent of the total refining capacity.
In FY19, total crude oil imports were valued at US$ 111.96 billion as compared to US$ 87.70 billion in FY18. In FY19, crude oil imports increased to 4.53 mbpd from 4.41 mbpd in FY18.
Production of petroleum products by fractionators grew to 4,931.22 tmt in FY19 from 4,808.00 tmt in FY18 and reached 3,179 TMT in FY20.
India is the fourth-largest Liquefied Natural Gas (LNG) importer after Japan, South Korea and China. India’s LNG imports stood at 27.43 billion cubic meters (bcm) during April 2019-January 2020. Gas pipeline infrastructure in the country stood at 16,226 km at the beginning of February 2019.
Investments in the Oil Industry
According to the data released by the Department for Promotion of Industry and Internal Trade Policy (DPIIT), the petroleum and natural gas sector attracted FDI worth US$ 7.07 billion between April 2000 and December 2019.
India’s energy demand is expected to double to 1,516 Mtoe ( Million tonnes of oil equivalent) by 2035 from 753.7 Mtoe in 2017. Moreover, the country’s share in global primary energy consumption is projected to increase by 2-folds by 2035.
Crude oil consumption is expected to grow at a CAGR of 3.60 per cent to 500 million tonnes by 2040 from 221.76 million tonnes in 2017.
Natural Gas consumption is forecasted to increase at a CAGR of 4.31 per cent to 143.08 million tonnes by 2040 from 54.20 million tonnes in 2017.
Diesel demand in India is expected to double to 163 million tonnes (MT) by 2029-30.