We are second largest refiner in Asia: As of May 1 2019 the oil refining capacity of India stood at 249. 4 million tonnes, making it the second largest refiner in Asia Private companies own about 35. 36 per cent of the total refining capacity.
Oil and Demand Supply in India
PIPELINES: REFINED PRODUCTS AND LPG PIPELINE NETWORK
Oil consumption has expanded at an AGR of 5.24 percent during 2007-18 to reach 5.16 mbpd by 2019
Due to the expected strong growth in demand, India’s dependence on oil imports is likely to increase further
Rapid economic growth is leading to greater outputs, which in turn is increasing the demand of oil for production and transportation
India’s crude oil demand is expected to increase over 150 percent to 10.1 million tonnes per day by 2040
In FY 19 total crude oil imports were valued at US 111 96 billion as compared to US 87 70 billion in FY 18.
In FY 19 crude oil imports increased to 4.53 mbpd from 4.41 mbpd in FY 18 ExxonMobil and ONGC signed a Memorandum of Understanding (MoU) for offshore blocks
The industry is expected to attract US$ 25 billion in investments in exploration and production by 2022.
Refining capacity in the country is expected to increase to 667 MTPA by 2040.
With 8,748 km of refined products pipeline in India, Indian Oil Corporation leads the segment with 50.25 per cent of the total length of product pipeline network, as of Apr 01 2019
Top three companies IOCL, HPCL and BPCL contribute 82.48 per cent of the total length of product pipeline network in the country
As of April 01 2019 Gas Authority of India Ltd ( has largest share 70 32 per cent or 11 410 km) of the country’s natural gas pipeline network 16,226 km)
STATE-OWNED COMPANIES DOMINATE OIL AND GAS IN INDIA
India’s domestic crude oil production in June 2019 is 2,688 thousand tonne ( As of 2017 the country had 600 million metric tonnes of proven oil reserves. Oil production is expected to rise and reach 36 bcm by 2021
Investments to enhance production
Oil consumption has expanded at a CAGR of 5.24 per cent during 2007-18 to reach 5.16 mbpd by 2019
Due to the expected strong growth in demand, India’s dependency on oil imports is likely to increase further
Rapid economic growth is leading to greater outputs, which in turn is increasing the demand of oil for production and transportation
India’s crude oil demand is expected to increase over 150 per cent to 10.1 million tonnes per day by 2040
In FY 19 total crude oil imports were valued at US 111 96 billion as compared to US 87 70 billion in FY 18.
In FY 19 crude oil imports increased to 4.53 mbpd from 4.41 mbpd in FY 18
ExxonMobil and ONGC signed an Memorandum of Understanding (MoU) for offshore blocks The industry is expected to attract US$ 25 billion investments in exploration and production by 2022.
Refining capacity in the country is expected to increase to 667 MTPA by 2040.
Move to non-conventional energy resources
Companies are looking forward to developing JVs and technical partnership with foreign companies to improve capabilities to develop shale reserves
The Government of India is planning to set up around 5 000 compressed biogas plants by 2023
More focus upon small companies
Private sector units like Adani, Sun Petrochemicals and few new entrants have bagged 1/3rd of small oil and gas fields
KEY DOMESTIC OIL AND GAS COMPANIES
The Bharat Petroleum Corporation (BPCL) -- strategic disinvestment of the government of India shareholding of 53.29 percent in the Bharat Petroleum Corporation except its equity shareholding of 61.65 percent in Numaligarh Refinery (NRL) and management control thereon, along with transfer of management control to a strategic buyer. Disinvestment of BPCL's shareholding of 61.65 percent in NRL along with transfer of management control to a Central Public Sector Enterprise (CPSE) operating in the Oil and Gas sector.
OUT LOOK ON INFRASTRUCTURE SEGMENT
Total allocation for infrastructure in Budget of 2019-20 stands at US$ 63.20 billion.
Railways and Metro
For 2019-20, the total capital expenditure of Railways is expected to be Rs 1.59 trillion (US$ 22.04 billion).
As per Union Budget 2018-19, capacity constraints in the railways network will be eliminated through doubling of 18,000 km of tracks, third and fourth lines and conversion of 5,000 km of tracks into broad gauge.
As per Union budget 2019-2020, Metro rail network has touched 657 Km and Ministry of Railways have been allocated Rs 94,071 crore (US$ 14.11 billion) in 2019-20.
Roads and Airports 2,000 kms of coastal connectivity roads have been identified for construction and development. The Government of India will construct 65,000 km of highways by 2022.
Bharatmala phase 2 going to be launched to develop the state road networks 30,000 kms of PMGSY roads have been built till FY2019 UDAAN, Number of Operational Airports crossed 100.
The Airports Authority of India aims to bring around 250 airports under operation across the country by 2020.
AAI plans to develop city side infrastructure at 13 regional airports across India, with help from private players for building of hotels, car parks and other facilities, and thereby boost its non-aeronautical revenues.
The development of Navi Mumbai airport has been approved The project will be developed on 74 26 percent partnership between MIAL and CIDCO and airport’s phase 1 with annual handling capacity of 10 million passengers each year rephrasing it from the origin
The Government of Andhra Pradesh is to develop greenfield airports in six cities Nizamabad, Nellore, Kurnool, Ramagundam, Tadepalligudem and Kothagudem under the PPP model
Construction
In 2019-20 Union Budget, government announced INR. 83.02 billon (US$ 11.51 billion) for road transport and highway. National Housing Bank assistance by World Bank to support low income housing finance project in Union Budget 2019-2020.
The National Steel Policy 2017 aims at higher spending on infrastructure and construction through government initiatives. As per Union budget 2019-2020, the investment of INR. 5,000,000 crores (US$ 750 billion) for railways infrastructure between 2018-2030 is needed.
Telecom and Energy I
NR. 8,350.00crore (US$ 1.16 billion) allocated in Union Budget 2019-20 for creation and augmentation of telecom infrastructure in the country. In the second phase of Strategic Crude Oil reserves, reserve capacity will be increased to 15.33 MT.
In the second phase of Solar Park Development an additional capacity of 20,000 MW will be generated.
