India’s Energy Source
The energy demand in India is growing and so the forms of energy production. New energy sources like renewable energy, biofuels and green hydrogen start making inroads into the emerging industry, yet oil and gas plays an essential role in providing the primary energy source.
The demand for oil and gas is constantly increasing worldwide. Asia Pacific plays a crucial role due to emerging and high potential economies such as India, China, Australia and Malaysia.
The global oil and gas EPC market for upstream, midstream and downstream sectors is projected to grow from $49.58bn in 2022 to $80.77bn in 2029 at a CAGR of 7.2% during the 2022-2029 period, as researched by the Maharashtra-based Fortune Business Insights.
The oil and gas will continue to meet the 'baseload' energy demand of India, says Hardeep Singh Puri, the head of the Ministry of Petroleum and Natural Gas. The country is the world's third-biggest crude importer whereby imports cover about 85% of its overall crude needs. India is taking steps to boost its oil and gas output while accelerating move to cleaner sources to cut emissions.
With growing energy demand, oil and gas pipeline construction is anticipated to grow. India leads among countries globally with planned and announced pipeline projects between 2021 and 2025, contributing around 23% of global pipeline additions by 2025, according to GlobalData, a leading data and analytics company.
India is set to have a planned and announced pipeline length of 29,612 km by 2025. Kandla-Gorakhpur is the largest upcoming pipeline project in the country with a length of 2,757 km. The pipeline will transport petroleum products and is proposed to be laid from Gujarat to Uttar Pradesh. It is expected to start operations in 2025.
The rising trend and development of India’s green energy portfolio to decarbonize various sectors and achieve climate neutrality, will impact the growth of the oil and gas industry, which is a significant source of GHG emissions and global warming. However, oil will continue to be in focus and its demand is not likely to be reduced in the country for the next few decades.