India is in a unique position. The country will witness the largest increase in energy demand in the world over the next 20 years, with the potential for oil consumption to rise from 4 million b/d currently to 8.7 million b/d by 2040 according to the IEA. However, the pathway to this increased crude demand may not be a smooth one. The push to increase fuel efficiency, alternative fuels and electrification could limit oil demand growth by around 1 million b/d through to 2040. However, either way, India will experience a significant increase in overall crude oil demand. As outlined in our Weekly Report back in October, India has a large refining sector which increasingly is integrating petrochemical facilities. To keep pace with rising local demand, refinery capacity will need to be expanded. Such a project can be seen in the Paradip refinery expansion, where capacity will be increased from 15 mtpa to 25 mtpa, with many more similar projects needed to keep up with demand. 

2021 03 12 - India Seeks Alternatives

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