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India Poised to Contribute 35% of Global Energy Demand Growth in the Coming Decades

19 Sept 2024

India is set to drive up to 35% of global energy demand growth over the next 20 years, Petroleum Minister Hardeep Puri stated at the Gastech conference in Houston on Tuesday.

India is set to drive up to 35% of global energy demand growth over the next 20 years, Petroleum Minister Hardeep Puri stated at the Gastech conference in Houston on Tuesday.


If global demand is increasing by one percent, ours is growing at three times that rate,” Puri remarked. “In the next two decades, India will contribute 35% of the global demand increase.”


At the same time, Puri emphasized India's commitment to the energy transition. “We will successfully manage and achieve the green transition,” he added. “That is the part I am most pleased with.


India is already a major driver of global energy demand growth and one of the top energy importers. Earlier this year, the U.S. Energy Information Administration (EIA) projected that India's industrial expansion would lead to a threefold increase in natural gas demand.


In 2022, India consumed 7.0 billion cubic feet per day (Bcf/d) of natural gas, with over 70% of this demand coming from the industrial sector. By 2050, the EIA estimates that India's natural gas consumption will more than triple to 23.2 Bcf/d.


Oil demand in India is also on the rise, prompting plans to significantly expand refining capacity. At the end of last year, the petroleum ministry announced plans to increase refining capacity by 1.12 million barrels per day (bpd) annually until 2028. Total refining capacity in India is expected to grow by 22% over the next five years from the current 254 million metric tons per year, equivalent to about 5.8 million bpd.


At the same time, India is keen to participate in the global energy transition. The country has set ambitious goals to install 500 gigawatts of renewable energy capacity by 2030, up from the current 153 GW.


Earlier this month, Renewable Energy Minister Pralhad Joshi announced that several banks had committed a total of $386 billion in investments to support India's renewable energy sector.


The detailed article published by oilprice.com can be accessed from https://oilprice.com/Latest-Energy-News/World-News/India-Set-to-Account-for-35-of-Global-Energy-Demand-Growth-in-Coming-Decades.html

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