India has achieved 12% ethanol blending in Petrol and has targeted for 20% blending by 2025
India`s demand for energy is growing faster than any other major economy and the growth trend is expected to continue, says Pankaj Jain, Secretary, MoP&NG in 17 July 2023.
“Growth will come in all sectors due to favorable demographics supported by urbanization and industrialization,” he said at the launched the Oil 2023 medium-term market report, titled “IEA Oil 2023 – Supply and demand dynamics to 2028”.
“Last year the overall consumption of petroleum products was at 223 MMT, with a growth of about 12% over the previous year,” said Jain on the consumption of petroleum products in FY 2022-23.
Jain pointed out that India is the World’s 4th largest refiner, has the 4th largest LNG receiving terminal capacity, 4th largest Auto market and is the 3rd largest bio fuels producer.
“India’s focus is on decarbonization and it has already achieved 12% ethanol blending in Petrol and has targeted for 20% blending by 2025,” he said at the launch by the International Energy Agency (IEA) which collaborated with Petroleum Planning and Analysis Cell (PPAC) under the aegis of MoP&NG.
Separately, the report sees growth of global oil demand slowing down, almost coming to a halt by 2028, due to hastened shift towards cleaner energy technologies for energy security concerns.
Despite robust demand from the petchem and aviation, annual demand growth is expected to decline from 2.4 mb/d in 2023 to just 0.4 mb/d in 2028, putting a peak in demand in sight.
In particular, the use of oil for transport is set to decline after 2026 as the expansion of electric vehicles, the growth of biofuels and improving fuel economy reduce consumption.
However, some economies, notably China and India, will continue to register growth throughout the forecast.
Alternate clean fuels like biofuels are expected to provide 10% of new liquid fuel supply growth to 2028. As per the report, biofuels production expands nearly 600 kb/d from 2022 to 2028. Brazil, Indonesia and India are expected to account for 70% of this increase, said the report.
IEA report has assessed that the global upstream investments in oil and gas exploration, extraction and production are on course to reach their highest levels since 2015, growing 11% year-on-year to US$528 billion in 2023. Fiinews.com
