India is the third 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 213.13 MMT petroleum products and 64.14 BCM natural gas in FY 2019-20, marking a growth of 0.4% and 5.5% over the FY 2018-19 consumption levels. India’s oil demand rises by almost 4 mb/d to reach 8.7 mb/d in 2040, the largest increase of any country.
India has 26 sedimentary basins covering an area of 3.36 Mn sq. km. The total number of fuel retail outlets increased from 18,848 (2002) to 77,094 (2021) at a CAGR of 7.7%. This number has increased to 81,099 as of Jan 2022.
India is working to become a gas based economy by increasing the share of natural gas in India’s energy mix from 6.3 % to 15% by 2030. Target of setting up 12 Commercial Scale 2G Bio-Ethanol Projects with Viability Gap Funding of up to INR 150 Cr per project under the Pradhan Mantri Ji-VAN Yojana.
Target of setting up 5000 Compressed Biogas (CBG) units under the Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme. Target of achieving 20% ethanol blending in petrol by 2025.
Petroleum Refinery production (weight: 28.04 %) increased by 6.2 % in July 2022 over July 2021. Its cumulative index increased by 11.7 % during April to July 2022-23 over the corresponding period of previous year.
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.
100% FDI allowed in infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products, petroleum product pipelines, natural gas/ pipelines, LNG regasification infrastructure, market study and formulation .
India's current refining capacity stands at 249 MMTPA, comprising of 23 refineries—19 under public sector, 3 under private sector and 1 in a joint venture. Indian Oil Corporation (IOC) is the largest domestic refiner with a capacity of 80.5 MMTPA.
One Nation One Gas Grid: A total of 21735 Kms of pipelines have been laid up to September, 2021 as part of the Gas Grid. India targets increasing the pipeline coverage by ~60% by 34,500km by 2024-25. All states are targeted to be connected by a trunk national pipeline network by 2027.
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 250 MMT in 2021 vs 236 MMT in 2020, i.e. a 5.9% YoY growth. The consumption of petroleum products stood at 201 MMT in 2021 vs 194 MMT in 2020, i.e. a 3.6% YoY growth.