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EXPANSION & DIVERSIFICATION IEA ANALYSIS
PLL draws Rs. 40,000-crore investment plan to treble ‘India’s oil demand will grow strongly, but oil

profi t by 2028 production will decline’

Petronet LNG Ltd. (PLL), India’s raising the capacity of the Dahej LNG PLL is hoping to start shipping India will see a continued growth the rise in domestic oil demand. Over Crude oil imports to rise to 5.8-mbpd
leading liquefi ed natural gas (LNG) import terminal to 22.5-mtpa, and LNG in containers to Sri Lanka in the in oil demand, assuming the position the next seven years, 1-mbpd of new by 2030
import terminal operator, will invest Rs. 1,245-crore in building an additional next 18 months and is looking to set up of the world’s largest source of global refi nery distillation capacity will be India was already the world’s sec-
Rs. 40,000-crore in expanding import storage tank and bays for truck loading an import terminal at Colombo port in oil demand growth, between now and added – more than any other country ond-largest crude oil net importer in
capacity and petrochemicals produc- of LNG. The Dahej import terminal fi ve years. 2030, however, its domestic oil produc- in the world outside of China. Several 2023, having boosted imports by 36%
tion with a target to treble net profi t by will also host a third jetty where pro- tion is poised to decline despite invest- other large projects are currently under over the past decade to 4.6-mbpd to meet
2028, its CEO Mr. A. K. Singh said. pane, ethane and LNG can be imported, Mr. Singh said, “Sri Lanka has ments, says a new report launched by consideration that may lift capacity be- rising refi nery intake. Increased refi ning
he said. already installed about 300-MW of the International Energy Agency (IEA) yond the 6.8-mbpd capacity expected processing will lift crude oil imports fur-
PLL is making a foray into the gas based, power plants, and still, they at India Energy Week (IEW) 2024 in so far. New refi ning capacity is forecast ther, to 5.8-mbpd by 2030, said the IEA.
petrochemical business by investing Petronet is also looking at setting don’t have gas. Sri Lanka approached Quitol, Goa. to boost product supplies to global mar-
Rs. 12,685-crore in a propane dehydro- up a 4 million tonne-a-year LNG im- us to set up an LNG terminal which is kets to 1.4-mbpd through mid-decade, Energy transition will deliver oil
genation (PDH) plant that will convert port terminal at Gopalpur port, he said, going to take more time, about three “As energy transitions gather pace before edging lower to 1.2-mbpd by savings
imported feedstock (propane) into propy- adding that the initial thought was to set to four years, to set up an FSRU based and China’s economy shifts gear to- 2030, given the steady rise in domestic Even as the oil production declines
lene, as well as setting up an LNG import up a fl oating storage & regasifi cation terminal.” wards a less energy-intensive phase, demand. in the medium term, India’s efforts to
facility at Gopalpur in Odisha at a cost (FSRU)-based LNG import facility but India will assume the position as the accelerate its energy transition is set
of Rs. 2,300-crore, he told reporters on the fi rm is now looking at a land-based As a stop gap arrangement, he ex- world’s largest source of oil demand India is set to maintain its position to deliver signifi cant oil savings in
the sidelines of India Energy Week. terminal. plained that Petronet is working out to growth this decade. In our 2023-2030 as a key exporter of transportation fuels the forecast period. Increased uptake
supply LNG through containers loaded forecast period, India accounts for more to markets in Asia and the Atlantic in electric vehicles is set to play a key
PLL currently operates a 17.5-mtpa Terminal in Sri Lanka on ships. About 850-tonnes of gas than one-third of global oil demand Basin. Continued investment in refi n- role in decarbonising the transport sec-
import terminal at Dahej in Gujarat The fi rm is also looking at investing per day will be supplied to the island growth,” said the IEW oil report on ing capacity and complexity will boost tor. “We estimate that, combined, new
and another 5-mtpa facility at Kochi, in overseas projects such as a fl oating nation in containers of 17-tonnes each. India.“India’s role in global oil markets light and middle distillate production, EVs and energy effi ciency improve-
Kerala. It will invest Rs. 600-crore in LNG terminal at Colombo in Sri Lanka. The supply will begin by 2025. is expected to expand substantially over even as the industry pivots further to- ments will avoid 480-kbpd of extra oil
the remainder of the decade, fuelled by wards heavier and more sour crudes. demand in the 2023-2030 period. That
GAS IMPORTS strong growth in its economy, popula- India’s role as a global swing supplier means without these gains India’s oil
has risen since 2022 as the loss of demand would reach a much higher
tion and demographics,” the report said.
Petronet, QatarEnergy sign 20-year LNG supply deal Russian product exports to European 1.68-mbpd by 2030 compared with the
India will consume more than one- markets has increased the pull of Asian current forecast,” said the IEA report.
Petronet LNG Ltd. (PLL) and Qatar new SPA shall also be lifted by GAIL Qatar-US LNG face-off third of the world’s oil by 2030 diesel and jet fuel westward.
Energy have inked a long-term LNG (India) Ltd. (60%), Indian Oil Corporation The deal with PLL also underscores India is on track to post an increase Biofuels are also expected to play
Sale & Purchase Agreement (SPA) for Ltd. (30%) and Bharat Petroleum Cor- an urgency on part of the Arab nation of almost 1.2-mbpd, accounting for Domestic crude oil production to see a key role in India’s decarbonisation of
the supply of around 7.5-mtpa of LNG poration Ltd. (10%) after regasifi cation to secure deals to tie up its 126-mtpa more than one-third of the projected continued declines over medium-term the transport sector. India is already the
to India, extending from 2028 to 2048. primarily at PLL’s Dahej LNG import LNG capacity, which is expected to be 3.2-mbpd global gains in oil produc- As a relatively small oil producer, world’s third-largest producer and con-
terminal on substantially back-to-back operational by 2027. tion, to reach 6.6-mbpd by 2030, said and with limited potential for near-term sumer of ethanol, as domestic production
The deal was signed on the side- basis, PLL said. It will assure continued the IEW. A massive industrial expan- growth, India’s domestic production has tripled over the last fi ve years. Sup-
lines of India Energy Week (IEW) in supplies of regasifi ed LNG to major Analysts point out that Asia, parti- sion means that diesel/gasoil is the accounted for just 13% of the country’s ported by the country’s abundant feed-
Goa on February 6. consuming sectors like fertilisers, city cularly China and India, have become single largest source of oil demand supply needs. In 2023, domestic oil stocks, political support and effective po-
gas distribution, refi neries & petro- more important for Qatar as it faces stiff growth, accounting for almost half production averaged around 700-kbpd. licy implementation, its ethanol blending
This agreement is an extension to chemicals, power and other industries. competition from the US, especially in of the rise in the nation’s demand and Despite renewed efforts by the govern- rate of around 12% is amongst the world’s
the existing SPA dated 31st July 1999, Europe, whose dependence on US LNG more than one-sixth of total global oil ment to attract foreign upstream invest- highest. India has advanced by fi ve years
which is due to expire in 2028, ensur- “This agreement will provide energy hit a new record of 45% in Gas Year demand growth through to 2030. ment, domestic crude oil production is its deadline for doubling nationwide etha-
ing a continued fl ow of LNG to meet security and ensure stable & reliable (GY) 2022-23 (October-September). expected to see continued declines over nol blending in gasoline to 20% in Q4
India’s growing energy needs. supply of clean energy and help India OMCs to add 1-mbpd of new refi nery the medium term. A dearth of new dis- 2026. “Achieving 20% ethanol blending
in its stride towards greater economic The competition between Qatar and distillation capacity by 2030 coveries in recent years will contribute in such a short time frame presents seve-
Similar to earlier agreement of development,” Mr. Akshay Kumar the US is expected to escalate as North Indian oil companies are investing to Indian oil supply falling to 540-kbpd ral challenges, not least rapidly expand-
1999, the LNG volumes under the Singh, MD & CEO, PLL said. America is also adding LNG capacities. heavily in the refi ning sector to meet by 2030, said the IEA. ing feedstock supplies,” said the IEA.

148 Chemical Weekly February 20, 2024 Chemical Weekly February 20, 2024 149

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