As of May 1, 2019, the oil refining capacity of India stood at 249.4 million tonnes, making it the second largest refiner in Asia. Private companies own about 35.36 per cent of the total refining capacity.
Annual oil consumption stood at 4.69 million barrels per day (MBPD) and 54.20 billion cubic meters (bcm) of gas. By 2035, India’s energy demand is expected to double to 1,516 Mtoe by 2035 from 753.7 Mtoe in 2017. According to the International Energy Agency (IEA), India is expected to account for almost one-third of the global growth in energy demand by 2040.
India had 4.5 thousand million barrels of proven oil reserves at the end of 2018 and produced 39.5 million tonnes in 2018. Production of crude oil reached 0.68 mbpd in 2018-19. India’s domestic crude oil production in June 2019 stood at 2,688 thousand tonne. Natural gas production during the same period stood at 32.06 bcm. Oil consumption has expanded at a CAGR of 5.24 per cent during 2007-18 to reach 5.16 mbpd by 2019. Natural Gas consumption is forecasted to increase at a CAGR of 4 per cent to 143.08 million tonnes (MT) by 2040 from 58.10 MT in 2018.
India has a flourishing crude oil refining industry with an annual capacity of 249.40 MMT, as of Apr 1, 2019.
Several initiatives have been taken by the Government of India including the launch of Open Acreage Licensing Policy (OALP) and Coal Bed Methane (CBM) policy. It has allowed 100 per cent foreign direct investment (FDI) in E&P projects/companies and 49 per cent in refining under the automatic route.
As per Union Budget 2019-20, Indian Scheme “Kayakave Kailasa”, The Ministry of Petroleum & Natural Gas has enabled SC/ST entrepreneurs in providing Bulk LPG Transportation. State run energy firms Bharat Petroleum, Hindustan Petroleum and Indian Oil Corp plan to spend US$ 20 billion on refinery expansions to add units, by 2022.
*As per Moody’s Investor Service