Gas infrastructure, LNG capacity augmentation, pipeline and CGD network will have $ 67 billion investment; Petrol demand grew by 1.5%, diesel demand by 8.79% and LPG demand by 6.93% in October on an annual basis due to the festive season.
The oil and gas sector in the country can be a major investment in the coming 8-10 years. It can be up to 206 billion dollars. On the other hand, crude oil prices have slipped 3% to $ 39 a barrel due to the return of the Coronavirus and a delay in relief packages in the US.
India Energy Forum
Prime Minister Narendra Modi inaugurated the India Energy Forum organized by CERA Week today. Addressing global authorities, he said that a strong pitch will be made for India Global Oil and Gas companies to invest in the country’s energy sector, which will be under the self-sufficient India mission. This virtual event will run from 26 October to 28 October.
Participation of sector majors
The three-day event featured Reliance Industries chief Mukesh Ambani, British Petroleum CEO Bernard Luni, OPEC Secretary-General Mohammed Sanusi Barkindo, US Energy Secretary Dan Bruillet, Saudi Arabia’s Energy Minister Prince Abdul Aziz and Abu Dhabi National Oil Company CEO Sultan Ahmed Officials from 45 leading companies in the world, including Al Jaber, will be involved.
Large investment potential in oil and gas sector
According to the statement released by the Prime Minister’s Office, when it comes to achieving such important goal of global level, you feel that the country has to make such huge investments in this decade. This includes a $ 67 billion investment in gas infrastructure, LNG capacity enhancement, pipelines and CGD networks. A government official said that global companies such as Total, Exxon Mobil and Shell have shown interest in the sector.
He said that putting Reliance-BP, ONGC and Oil India together would lead to an investment of about $ 59 billion towards expansion and production. On the other hand, investments in marketing, refinery expansion and plans for new refineries such as Vizag, Barmer, Paradip and Ratnagiri may attract up to $ 80 billion in downstream segments.
Fuel demand increases
There has been an increase in fuel demand in India in the current month. Petrol demand grew by 1.5%, diesel demand by 8.79% and LPG demand by 6.93% on an annual basis due to the festive season. It is estimated that the world’s total primary energy demand will increase slightly by 1% annually by 2040. It is also projected to remain mainly concentrated in India and Asia. At the same time, India’s energy demand will grow by 3% per year by 2040.
Crude oil price fall
There has been a sharp fall in the prices of crude oil. This is due to rising corona cases in the US and Europe, delays in the announcement of relief packages in the US and resumption of stable supplies from Libya. The price in futures has slipped 3% to below $ 39 a barrel. According to Bloomberg, if the Corona cases continue to rise in Europe and the US, the OPEC + alliance could end the easing of production cuts planned since January.