Ministry expects increasing investments in industry
India has witnessed a remarkable surge in petroleum product exports over the last decade, supplying to destinations including South Asian, African and European countries from its 256.816 million metric tonnes per annum (MMTPA) capacity refineries.
The government’s emphasis on export-oriented growth and establishing Special Economic Zones (SEZs) for refineries have further boosted this trend, the Ministry of Petroleum & Natural Gas said on 27 Jan in an update on the industry.
India’s 19 Public-Sector Undertaking (PSU) refineries, three Private-Sector refineries, and one Joint Venture refinery, with combined capacity of 256.816 MMTPA in April 2024, up from 215.066 MMTPA in April 2014 indiaenergyweek .
Exports not only contribute to foreign exchange reserves but also enhance India’s stature as a global energy supplier, it added.
India’s petroleum industry faces a dynamic future, shaped by global energy transitions and domestic demand, according to the report https://www.opec.org/opec_web/en/.
Increasing investments in exploration, expanding refining capacities, and embracing renewable energy sources will define its trajectory https://sbi.com.in/.
Initiatives like green hydrogen production and carbon capture technologies highlight the sector’s adaptability. With a focus on sustainability and energy efficiency, India is poised to maintain its leadership in the global energy landscape while aligning with its climate commitments https://www.iea.org/.
India’s energy landscape is rapidly evolving. The country boasts of 651.8 million metric tons of recoverable crude oil reserves and 1,138.6 billion cubic meters of recoverable natural gas reserves within its sedimentary basins.
Highlights:
India is on track to increase its exploration acreage to one million square km by 2030, with a 16% increase expected in 2025.
The approval process for exploration and production activities in the petroleum industry has now been simplified, reducing 37 approval processes to just 18, of which nine are now available for self-certification https://www.bseindia.com/.
Introducing the Oilfields (Regulation and Development) Amendment Bill in 2024 ensures policy stability for oil and gas producers, and enables single license for all hydrocarbons. This bill was recently passed by the Rajya Sabha on 3 Dec 2024 https://www.nseindia.com/.
As per the information from the Ministry of Statistics and Programme Implementation, Gross Value Addition (GVA) of manufacture of Coke and Refined Petroleum Products has increased from Rs.1.56 lakh crore in 2012-13 to Rs.2.12 lakh crore in 2022-23 (as per first revised estimates).
India ranks among the top five refining nations globally, and is the seventh-largest exporter of refined petroleum products.
Facilities like the Jamnagar refinery, one of the world’s largest, underscore India’s dominance in the refining sector. This global standing enhances India’s energy security and positions it as a key player in international energy markets.
International Energy Agency (IEA) in February 2024 assessed that India will become the largest source of global oil demand growth between now and 2030. India is the second-largest economy in biofuel blending, following Brazil.
Technological Advancements in Petroleum Industry https://www.conexpoconagg.com/
Adopting cutting-edge technologies has been pivotal to the petroleum industry’s growth. Enhanced Oil Recovery (EOR) techniques, digitalization, and the use of artificial intelligence (AI) have optimized exploration and production processes.
Refineries are increasingly adopting green technologies to minimize environmental impact. Projects such as bio-refineries and the development of alternative fuels like compressed bio-gas (CBG) showcase the industry’s commitment to sustainability and innovation.
The Indian government has launched several initiatives to bolster the petroleum sector. Here are some key schemes:
Pradhan Mantri JI-VAN Yojana: Supporting bio-ethanol projects such as second generation and third generation plants for sustainable fuel production.
Strategic Petroleum Reserves: Enhancing energy security through storage facilities. In India, the SPR is primarily located at three underground storage facilities in Visakhapatnam, Mangalore, and Padur (Karnataka), with a total capacity of 5.33 million metric tonnes (MMT) of crude oil managed by the Indian Strategic Petroleum Reserve Limited (ISPRL).
Ethanol Blending Program: Promoting biofuels to reduce dependence on fossil fuels and curb emissions. The government has a target of achieving 20% ethanol blending in petrol by 2025-26. Since the inception of the EBP Programme, ethanol blending has increased from 38 crore litres in the Ethanol Supply Year (ESY) 2013-14 to over 707.4 crore litres in ESY 2023-24.
City Gas Distribution Network Expansion: Expanding piped natural gas (PNG) and compressed natural gas (CNG) infrastructure by covering 733 districts in 34 states/UTs covering almost 100% of the mainland area and almost 100% of total geographical area of the country.
Energy Security Initiatives: Investing in overseas exploration and acquisition of oil blocks.
Moving towards Greener Fuels
SATAT Initiative (Sustainable Alternative Towards Affordable Transportation): The SATAT initiative invites potential investors to set up Compressed Biogas (CBG) production plants. The aim is to make better use of agricultural residue, cattle dung, and municipal solid waste, and provide farmers with an additional source of revenue.
Mission Green Hydrogen: Promoting green hydrogen production to reduce carbon footprint. According to the Ministry of New and Renewable Energy, a global demand of over 100 MMT of Green Hydrogen and its derivatives like Green Ammonia is expected to emerge by 2030. Aiming at about 10% of the global market, India can potentially export about 10 MMT Green Hydrogen and Green Ammonia per annum.
The production capacity targeted by 2030 is likely to leverage over Rs.8 lakh crore in total investments and create over 6 lakh jobs. Nearly 50 MMT per annum of CO2 emissions are expected to be averted as a result of the various Green Hydrogen initiatives under the Mission.
Achievement of Mission targets is expected to contribute to India’s energy security and reduce a cumulative Rs.1 lakh crore worth of fossil fuel imports by 2030.
National Bio-Energy Programme: Focused on bio-energy production and reducing waste.
Hydrocarbon Exploration and Licensing Policy (HELP): Encouraging private investment in exploration and production.
The petroleum industry’s expansion has multifaceted implications. Economically, it boosts GDP, foreign exchange earnings, and industrial growth. Politically, energy independence strengthens India’s global standing and reduces strategic vulnerabilities. Socially, the industry’s growth promotes rural development through improved energy access and employment. Fiinews.com
