India to be largest global oil demand growth driver through 2030 -IEA
India is expected to be the largest driver of global oil demand growth between 2023 and 2030, narrowly taking the lead from top importer China, the International Energy Agency (IEA) said on Wednesday. The world’s third-largest oil importer and consumer is on track to post an oil demand increase of almost 1.2 million barrels per day (bpd), accounting for more than one-third of the projected 3.2 million bpd global gains, the IEA said in a report released at the India Energy Week in Goa. The agency forecast India’s demand would reach 6.6 million bpd in 2030, up from 5.5 million bpd in 2023. “India will become the largest source of global oil demand growth between now and 2030, while growth in developed economies and China initially slows and then subsequently goes into reverse in our outlook,” it added. To meet this demand, India is expected to add 1 million bpd of new refining capacity over the seven-year period and this will increase its crude imports further to 5.8 million bpd by 2030, the IEA said. Among products, diesel will be India’s single largest source of oil demand growth on the back of massive industrial expansion, accounting for almost half of the rise in the nation’s demand and more than one-sixth of total global oil demand growth through to 2030, the IEA said. Jet fuel is poised to grow at 5.9% annually on average but this will be from a low base compared with other countries, it added. The electrification of India’s vehicle fleet will lead to a more muted 0.7% annual growth average for gasoline, the IEA said. New electric vehicles and energy efficiency improvements in India will avoid 480,000 bpd of extra oil demand from now to 2030, it added.
India to invest $67 bn in 5-6 years for developing gas sector: PM Modi
Prime Minister Narendra Modi on Tuesday said India will witness a USD 67 billion investment in the natural gas supply chain in 5-6 years as part of “unprecedented” investments flowing into the energy sector to meet the needs of the world’s fastest growing major economy. Speaking at the second edition of the India Energy Week here, he said reforms by his government are leading to a rise in domestic natural gas production as part of the wider aim to increase the share of the fuel in the energy basket to 15 per cent by 2030 from current 6.3 per cent. Natural gas is seen as a transition fuel in India’s march towards net zero carbon emission by 2070. Gas, which is used to generate electricity, make fertiliser or turn into CNG for running automobiles as well as for cooking, is considered less polluting fuel than other fossil fuels such as coal. Modi said India’s world-beating economic growth rate is fuelling a surge in energy needs. “India is the world’s third largest energy, oil and LPG consumer. It is the fourth largest LNG importer and refiner as well as the fourth largest automobile market,” he said, adding the nation’s energy demand is estimated to double by 2045
Mahanagar Gas may raise prices if subsidised supply drops more
India’s city gas distributor Mahanagar Gas said it will consider hiking gas prices for customers if a shortfall in subsidised supply persists, a company executive said. Companies including Indraprastha Gas, Gujarat Gas, Mahanagar Gas have seen their margins squeezed because the allocation of natural gas sold under government-set Administered Pricing Mechanism (APM) has fallen because of lower output at domestic wells. To make up the shortfall, the companies have to buy gas on the more expensive open market. APM allocations are expected to further decline as explorer Oil and Natural Gas Corp slashed its peak output from the KG-D6 basin in January. “In December, we have seen some disruptions in APM gas allocations and eventually as the gas demand increases, the allocations will come down,” said Ashu Shinghal, managing director of Mahanagar Gas. “Right now we are absorbing costs, if APM allocations go down further we will take a call on price hikes,” Shinghal said. Shinghal expects the company’s gas demand to rise by 6% to 7% from a year ago in the fiscal year 2025. Demand from the industrial, commercial sector has been good and Asian liquefied natural gas prices are expected to be stable, Shinghal added.
India Seeks Stronger Energy Ties With US; Asserts Russian Oil Purchases Stabilize Market
In the midst of geopolitical turbulence sparked by the Ukraine war, India has underscored the importance of its energy partnership with the United States, citing its strategic purchases of Russian oil as a stabilizing force in global crude markets. According to S&P Global Commodity Insights, Assistant Secretary of State for Energy Resources Geoffrey R. Pyatt revealed that discussions between US officials and India’s Petroleum Minister Hardeep Singh Puri highlighted India’s perspective on the matter during a recent online interaction with the media. Pyatt emphasized that India’s significant procurement of Russian oil served the dual purpose of curbing global crude prices and ensuring affordable fuel for its citizens. “On Russian oil, this was a big part of my conversation with Minister Puri. We both agreed – and I said the same thing at much greater length on my visit to India last year. India has played a key role in our effort to stabilize global energy markets in the face of the extraordinary destabilization caused by Vladimir Putin’s brutal invasion of Ukraine and the weaponization of his oil and gas resources,” Pyatt stated, echoing sentiments shared during his previous visit to India.