Page 155 - CW E-Magazine (7-1-2025)

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OUTLOOK from Indian exploration companies further rise in the coming years as India for more deals to meet the ambitious
India to drive global oil demand growth till 2035: including the state-run ONGC and Oil has extended existing deals and signed target becoming a gas-based economy
India, and some private players have new LNG deals with the producing with 15% share of natural gas in India’s
IEA report shown disappointing growth of 1.1% countries. total energy basket, compared to
current 6.2%.
in the period.
In February, India’s Petronet LNG
India is set to lead global oil demand that easing market balances and declin- Amid stagnant production and ris- Ltd. (PLL) extended the deal to supply To support higher consumption,
growth until 2035, according to a recent ing oil demand growth could stabilise ing consumption, India is forced to 7.5-mtpa from 2028 to 2048. Recently, Indian oil and gas companies are build-
report by Paris-based think tank, Inter- prices in the long run. meet demand through imports from the country’s largest gas importer GAIL ing better infrastructure including LNG
national Energy Agency (IEA). countries such as Qatar, Australia and (India) signed a deal with Qatar to sup- terminals, laying gas pipelines across
Additionally, a signifi cant transfor- the US. ply one cargo per month to the company the country, setting up new compressed
The report highlighted that India mation is underway in the transport sec- starting April for fi ve years. With the natural gas (CNG) stations and promot-
will add nearly 2-million barrels per day tor. The report stated that over the past Additional sourcing contracts rising demand and improving gas ing more piped natural gas (PNG) con-
(mbpd) to global oil demand during this decade, road transport has driven oil The share of imports is expected to infrastructure, the country is scouting nections.
period, making it the primary growth demand growth by 4.2-mbpd, contribut-
driver of the entire industry. This shift ing to nearly half of global oil demand CII INTERNATIONAL ENERGY CONFERENCE
comes as China, which has historically signifi cant challenges for major oil-pro- growth. However, this trend is revers- AI and ML to aid renewable energy forecasts
been the engine of oil market growth, ducing nations. These resource owners ing, with oil demand for passenger cars
transitions towards electricity-driven may face an oversupply situation as expected to decline by 1-mbpd by 2030. for effective grid management
energy usage. spare crude oil production capacity is This change is a major factor behind the
expected to rise to 8-mbpd by 2030. anticipated peak in global oil demand by
The report noted that China’s oil the end of this decade under the STEPS. The Ministry of Power is exploring used in transformer is an important period the transformation capacity will
consumption for road transport is pro- The IEA also warned of potential new Artifi cial Intelligence (AI) and item. We are aware that it is not manu- increase from 1,251-GVA to 2,342-GVA,
jected to decline due to the rise of elec- near-term disruptions to oil and gas sup- Looking ahead, new LNG projects Machine Learning (ML) technologies factured in India, but this is an essential according to a PIB release earlier
tric vehicles. However, this decline is plies due to geopolitical tensions in the are expected to increase global export to do near accurate forecasting for important component for transmission this year.
partially offset by increased oil usage in Middle East. It stated that approximate- capacity by almost 50% by 2030, further solar and wind power generation for network for the transformers. The PLI
petrochemical production. ly 20% of the world’s oil and liquefi ed reshaping the global energy landscape. effective grid management. Scheme has not taken off as per expec- The total investment in the plan is
natural gas (LNG) supplies currently pass As countries adapt to these shifts, as per tation, so we are adding more ideas so estimated at Rs. 9.15 lakh-crore till
Globally, the growth in oil demand is through the Strait of Hormuz, a critical report India’s growing energy needs will “We are reviewing the AI/ML tech- that PLI scheme for special steel can 2032, added Dr. Sai Baba. “This plan
slowing down under the Stated Policies maritime chokepoint in the region. play a central role in shaping global oil nologies for near accurate forecasting. have needed uptake. We are hopeful in will help in meeting the increasing
Scenario (STEPS), which is causing Despite these risks, the report suggested markets. We are reviewing the forecasting tech- the next two years the country will be electricity demand, facilitate renewable
nologies for solar and wind generation able to start producing some amount of energy integration and green hydrogen
ENERGY CONSUMPTION to address the challenge for effective special steel. That will be a big relief loads into the grid.”
India’s LNG import dependency deepens to 51% grid management and plan better,” for the demand of transformers in the Pumped Storage Projects (PSP)
said Dr. D. Sai Baba, Joint Secretary, country,” said Mr. Sai.
on higher consumption Ministry of Power. He was speaking policy in the offi ng
at the fi fth ‘CII International Energy ‘Rs. 9.15 lakh-crore to be invested
The Power Ministry is also plan-
Conference and Exhibition’ at New till 2032’ ning to bring a Pumped Storage Pro-
India’s dependency on imports of rising 10.41% from last year at 48,682 Delhi on December 18. As part of its climate action jects (PSP) policy, said Mr. Mohammad
liquefi ed natural gas (LNG) has in- MMSCM. commitments, India has fi nalised its Afzal, Joint Secretary-Hydro, Ministry
creased in the current year amid higher Dr. Sai also added that the govern- National Electricity Plan (2023 to 2032) of Power. Given that tariffs of hydro
consumption but stagnant domestic India’s domestic production, how- ment is looking to modify the Produc- for Central and State Transmission power are higher than solar and wind,
production. The country’s LNG ever, has been stagnant over the years, tion Linked Incentive (PLI) Scheme Systems that aims to meet the peak Central fi nancial assistance is being
import dependency has jumped to 51% increasing the country’s reliance on for specialty steels for inclusion of demand of 458-GW by 2032. Under provided in various forms.
of the total domestic consumption in imports and in turn resulting in higher steel used in transformers and other the previous plan (2017-22), about
the current fi scal till November, com- import bill. The LNG import bill of transmission equipment in order en- 17,700-ckm lines and 73-GVA trans- Mr. B. Thiagarajan, Chairman,
pared to 46.5% in the same period last the country in the period came in at courage domestic production. formation capacity were added annu- CII’s Indian Green Building Council
year, showed offi cial data. of LNG from April to November 2024, $10-bn, compared to $8.7-bn last year. ally. Under the new plan, transmission (IGBC) and Managing Director, Blue
21% higher than the last year. The “One of the major challenges in network in the country will be expanded Star Ltd. said within a year, India
The country imported 24,798- million higher imports come on the back of Despite government’s efforts to boost supply-chain is getting transformers from 4.85-lakh ckm in 2024 to 6.48- will have the largest number of green
metric standard cubic metre (MMSCM) increased gas consumption in the period, exploration activities, gas production and reactors. For that the special steel lakh ckm in 2032. During the same buildings.

154 Chemical Weekly January 7, 2025 Chemical Weekly January 7, 2025 155

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