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India to account for one third of oil and gas project starts in Asia-Pacific by 2025
India is likely to witness the start-up of 647 oil and gas projects during 2021 to 2025, accounting for 33% of the total upcoming project starts across the value chain in the Asia-Pacific region, reports GlobalData.
According to its latest analysis, out of the 647 projects identified, petrochemicals will account for the lion’s share, at 259 projects, with 80 upstream, 123 midstream and eight refining developments coming onstream in the period.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, comments: ‘India is one of the largest consumers and importers of oil and gas in the world due to its economic growth. Though India is taking steps to increase oil and gas production, the focus is more on the development of midstream, refineries and petrochemicals infrastructure for greater imports, processing, transport and storage.’
Downstream refining and petrochemical projects together constitute about 69% of all upcoming oil and gas projects in India during 2021 to 2025. The 180,000 b/d capacity Barmer refinery is one of the key projects, with a total cost of $4.5bn. The project is currently under the construction stage and is expected to start operations in 2025. The Haldia Balasore Xylene (SBR) plant is one of the key petrochemical projects, with a capacity of 1.6mn t/y. The $1.9bn project has already received approval and is expected to start operations in 2024.
GlobalData notes that midstream projects will constitute around 19% of all oil and gas project starts in India over 2021–2025. In the midstream sector, pipelines will account for 47% of all projects, with a focus on natural gas. The $1.4bn, 1,900 km Jagdishpur–Haldia Phase II pipeline is a key development, expected to be commissioned in 2022.
Oil storage and LNG are forecast to account for 36% and 14% of oil and gas project start-ups between 2021 and 2025. The Chandikhol strategic petroleum reserves project is a key development, with a capacity of 30mn barrels. Expected to cost $941mn, the project has received approval and is expected to start operations in 2025. Among upcoming LNG import terminal projects is Karwar Floating, with a 365bn cf capacity and a cost of $573mn.
Upstream developments include the Cluster IIA project, due to be commissioned this year, with a total production capacity of 99,700 boe/d.
Figure 1: Upcoming oil and gas projects in India, by sector, 2021–2025