India is world's fifth-largest energy consumer in the world; oil accounts for 30 per cent of the total energy consumption. Buoyant economic growth is the main factor driving the country's energy requirements.
The country has 5.7 billion barrels of proven oil reserves with an average oil production of 1 million barrels per day (MPBD). Oil consumption is estimated to rise from 3.1 MPBD in 2008 to 4 MPBD by 2016, a compound annual growth rate (CAGR) of 3.5 per cent. India has 1,100 billion cubic meters (BCM) of gas reserves, which produce 46.1 BCM of gas annually (2011).
India's gas demand is approximately 11.2 per cent of the total Asia Pacific regional demand. Several industries are increasing the usage of natural gas in operations; this has boosted natural gas demand in India.
The Government of India has enacted various policies, such as the New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM) Policy, to encourage investments across the industry's value chain. 100 per cent foreign direct investment (FDI) is allowed in the exploration and production (E&P) projects/ companies; and 49 per cent is allowed in refining.
Liquefied natural gas (LNG) imports have increased significantly; this provides an opportunity to boost production capacity in the country. In light of mounting LNG production, huge opportunity lies for LNG terminal operation, engineering, procurement and construction services.
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