The country’s demand for oil will grow to 500 million tonnes per year by 2040 according to Partha Ghosh, an executive director at Indian Oil Corp. However, the rising prices might slow down the rate of growth.
According to a report by The Hindustan Times, Ghosh said in the Asia Pacific Petroleum Conference (APPEC) in Singapore that global oil demand will increase by 15.8 million bpd from now until 2040. India’s growth of 5.9 million bpd will make up about 24 per cent of the overall gain, he added.
By 2030, India’s refining capacity will increase to 439 million tonnes per year, as refineries enhance their infrastructure. “In the future, say about five to seven years down the line, when more refineries with bigger capacities come up, better (export) infrastructure will come along with that,” he said.
“Then, it’ll be possible, even if the domestic demand does not grow because of high prices, refineries will be competitive enough to actually supply products to the entire region, be it East Africa or Asia,” Ghosh added.
“While alternatives and energy efficiency is expected to reduce oil demand, the biggest dampening factor will come from a sustained increase in oil prices,” Ghosh said about the demand growth rate