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

India is projected to contribute up to 35% of the global surge in energy demand over the next two decades, according to petroleum minister Hardeep Puri, who made the statement during the Gastech conference in Houston.

“If global demand rises by 1%, India’s will grow at three times that rate,” Puri remarked, noting that India's share in the overall increase will reach 35% in the coming years.

While addressing energy needs, Puri emphasized that India is also committed to transitioning towards cleaner energy. “We will manage and succeed in achieving the green transition,” he stated, expressing his confidence in the country's efforts.

India is already a major force behind the rise in energy demand and ranks as one of the top energy importers. Earlier in the year, the U.S. Energy Information Administration (EIA) predicted that India’s industrial growth would drive a significant rise in natural gas consumption, potentially tripling in the near future.

In 2022, India’s daily natural gas consumption stood at 7 billion cubic feet, with more than 70% of it used by the industrial sector. The EIA forecasts this figure to more than triple by 2050, reaching 23.2 billion cubic feet per day.

The nation’s oil demand is also experiencing an upward trend, prompting the government to make plans for a substantial expansion in refining capacity. By the end of 2022, the petroleum ministry outlined a strategy to boost capacity by 1.12 million barrels per day annually, continuing through 2028.

As a result, India’s refining capacity is anticipated to increase by 22% within five years, rising from the current 254 million metric tons per year, or approximately 5.8 million barrels per day.

Despite this focus on fossil fuels, India remains keen on advancing its energy transition. The country has set an ambitious goal to install 500 gigawatts of renewable energy capacity by 2030, a significant leap from its current 153 GW capacity.

Additionally, India’s Renewable Energy Minister, Pralhad Joshi, recently disclosed that various banks have pledged a combined $386 billion to support the expansion of the nation’s renewable energy sector.

by WPB