Mumbai, Jan 10: India’s oil demand growth is set to overtake China by mid-2020s, priming the country for more refinery investment but making it more vulnerable to supply disruption in the Middle East, the International Energy Agency (IEA) said on Friday.
India’s oil demand is expected to reach 6 million barrels per day (bpd) by 2024 from 4.4 million bpd in 2017, but its domestic production is expected to rise only marginally, making the country more reliant on crude imports and more vulnerable to supply disruption in the Middle East, the agency said.
China’s demand growth is likely to be slightly lower than that of India by the mid-2020s, as per IEA’s China estimates given in November, but the gap would slowly become bigger thereafter.
“Indian economy is and will become even more exposed to risks of supply disruptions, geopolitical uncertainties and the volatility of oil prices,” the IEA said in a report on India’s energy policies.
Brent crude prices topped USD 70 a barrel on rising geopolitical tensions in the Middle East, putting pressure on emerging markets such as India. Like the rest of Asia, India is highly dependent on Middle East oil supplies with Iraq being its largest crude supplier.
India, which ranks No 3 in terms of global oil consumption after China and the United States, ships in over 80 per cent of its oil needs, of which 65 per cent is from the Middle East through the Strait of Hormuz, the IEA said.
The IEA, which coordinates release of strategic petroleum reserves (SPR) among developed countries in times of emergency, said it is important for India to expand its reserves.
REFINERY INVESTMENTS
India is the world’s fourth largest oil refiner and a net exporter of refined fuel, mainly gasoline and diesel.
India has drawn plans to lift its refining capacity to about 8 million bpd by 2025 from the current about 5 million bpd.
The IEA, however, forecasts India’s refining capacity to rise to 5.7 million bpd by 2024.
This would make “India a very attractive market for refinery investment,” IEA said.
Drawn to India’s higher fuel demand potential, global oil majors like Saudi Aramco, BP, Abu Dhabi National Oil Co and Total are looking at investing in India’s oil sector.
Saudi Aramco and ADNOC aim to own a 50 per cent stake in a planned 1.2-million bpd refinery in western Maharashtra state, for which land is yet to be acquired.
Comments
what you know about HAJJ, first you try to learn your religion man you maron...you know in veda says there is no image of GOD, dont follow donkey, follow hindu scripture, first of all dont know what is hindu religion and goes to show finger on MUSLIM, look at you face in mirron and ask yourself do you following GODs religion or Devil religion...who is your god bootha or pure GOD.
dont act like maron of hindu community, think before comment, any thing happens to hindu then they blame muslim, what a joke,,there is saying that 80% dogs are worried about 14% lion in forest..haha
yo naresh, first try to learn veda the hindu scripture. which says there is no image of god..if you follow poojari then go to hell, who told muslims are not allowed, did you went any time to masjid to see how it is operated. you maron always behind bar and worship stone, how will your brain develop..first try to become good hindu then you can point muslim.
In most of the masjids having seperate place for woman also... better at least provide seperate way for hindu woman in temples to avoid mingling .... above judgement is on internal issue of hindu custom issue , why dragging muslims to it ?
According to North states' people and BJP people, there is a chance of flood again in Kerala, becuase SC challenged GOD. Those north state fools said that Kerala Flood was aftermath of Sabarimala verdict. Even RBI official backs the statement
Actually 99 percent of women in Kerala following the rule. They are waiting for their turn. Its like hajj. You people wont understand that. Some fools filed petition in order to destroy Hindu religious customs and traditions and muslim lawyer advocated for that. Now everything perished
Silly issue got more hype.
All bloody activists wants to destroy Hindu religion thats it. They won't raise voice against inequalities in Islam. They won't question their customs.
So called activitsts not protesting against inequalities among muslims. Why muslim girls cant enter in to mosque for offering namaz. Why they have seperate one.
Gender equality won
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