Page 45 - Policy Economic Report - October 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

International Energy Agency (IEA) forecasts a growth potential of 3.5 to 5 times for biofuels by 2050 due
to Net Zero targets, presenting a substantial opportunity for India. The Global Biofuels Alliance (GBA) aims
to facilitate knowledge sharing, technological advancement, and policy development, unlocking a $500
billion opportunity in biofuels and accelerating global adoption through technology transfer. He said that
the government initiatives, such as the Indian Solar Alliance (ISA) and GBA, aim to accelerate the transition
to cleaner energy sources, reduce import dependency, save foreign exchange, promote a circular
economy, and move toward a self-reliant energy future.

The Minister also referred to different incentives introduced by government to support ethanol
production.

Shri Puri also highlighted India’s collaboration with Brazil, emphasizing the importance of joint efforts in
sustainable bioenergy and biofuels to enhance energy security and reduce carbon emissions, particularly
in hard-to-decarbonize sectors like aviation and shipping.

In his concluding remarks, Shri Hardeep Singh Puri emphasized that the responsibility for fuelling India’s
green growth extends beyond the government to include industry leaders, researchers, innovators, and
citizens. He urged all stakeholders to collaborate boldly to establish a sustainable bioenergy sector that
meets energy needs and sets a global standard.

Petroleum Minister Hardeep Puri Highlights India's Petrochemical Potential at India Chem 2024

The market size of the Indian Chemicals and Petrochemicals sector is expected to grow to approximately
USD 300 billion by 2025, up from its current market size of USD 220 billion, said Shri Hardeep Singh Puri
while addressing the ‘Roundtable on Petrochemical’ during India Chem 2024. He said that the demand for
chemicals is predicted to nearly triple and the petrochemicals industry in India may reach US$1 trillion by
2040.

Addressing industry leaders, Shri Hardeep Singh Puri highlighted the vast potential of India’s
petrochemical sector. With annual consumption between 25 to 30 million tonnes, India stands as Asia's
third-largest economy, exhibiting a per capita consumption significantly lower than developed nations.
This gap presents ample opportunities for demand growth and investment.

As the sixth-largest chemicals producer globally and third in Asia, India exports chemicals to over 175
countries, accounting for 15% of its total exports. Shri Puri emphasized that chemicals and petrochemicals
will drive global oil demand growth, with India’s integrated petrochemical capacity linked closely to its
expanding refining capabilities. Projections indicate an increase from 257 MMTPA to 310 MMTPA by 2028,
enhancing cost competitiveness.

The government, alongside PSUs like ONGC and BPCL and private players like Haldia Petrochemicals, is
committed to significant investments, with nearly USD 45 billion in petrochemical projects underway. An
additional USD 100 billion is projected to meet rising demand, aligning with India’s transition to a lower-
carbon future.

October 2024 Page | 44